Chapter 133: UNIFORM PUBLIC SECURITIES LAW

As used in this chapter,
in sections 9.95 ,
9.96 , and
2151.655 of the Revised Code, in
other sections of the Revised Code that make reference to this chapter unless
the context does not permit, and in related proceedings, unless otherwise
expressly provided:

(A)
"Acquisition" as applied to real or personal property includes, among other
forms of acquisition, acquisition by exercise of a purchase option, and
acquisition of interests in property, including, without limitation, easements
and rights-of-way, and leasehold and other lease interests initially extending
or extendable for a period of at least sixty months.

(B)
"Anticipatory securities" means securities, including notes, issued in
anticipation of the issuance of other securities.

(C)
"Board of elections" means the county board of elections of the county in which
the subdivision is located. If the subdivision is located in more than one
county, "board of elections" means the county board of elections of the county
that contains the largest portion of the population of the subdivision or that
otherwise has jurisdiction in practice over and customarily handles election
matters relating to the subdivision.

(D)
"Bond retirement fund" means the bond retirement fund provided for in section
5705.09 of the Revised Code, and
also means a sinking fund or any other special fund, regardless of the name
applied to it, established by or pursuant to law or the proceedings for the
payment of debt charges. Provision may be made in the applicable proceedings
for the establishment in a bond retirement fund of separate accounts relating
to debt charges on particular securities, or on securities payable from the
same or common sources, and for the application of moneys in those accounts
only to specified debt charges on specified securities or categories of
securities. Subject to law and any provisions in the applicable proceedings,
moneys in a bond retirement fund or separate account in a bond retirement fund
may be transferred to other funds and accounts.

(E)
"Capitalized interest" means all or a portion of the interest payable on
securities from their date to a date stated or provided for in the applicable
legislation, which interest is to be paid from the proceeds of the
securities.

(F)
"Chapter
133. securities" means securities authorized by or issued pursuant to or in
accordance with this chapter.

(G)
"County auditor" means the county auditor of the county in which the
subdivision is located. If the subdivision is located in more than one county,
"county auditor" means the county auditor of the county that contains the
highest amount of the tax valuation of the subdivision or that otherwise has
jurisdiction in practice over and customarily handles property tax matters
relating to the subdivision. In the case of a county that has adopted a
charter, "county auditor" means the officer who generally has the duties and
functions provided in the Revised Code for a county auditor.

(H)
"Credit enhancement facilities" means letters of credit, lines of credit,
stand-by, contingent, or firm securities purchase agreements, insurance, or
surety arrangements, guarantees, and other arrangements that provide for direct
or contingent payment of debt charges, for security or additional security in
the event of nonpayment or default in respect of securities, or for making
payment of debt charges to and at the option and on demand of securities
holders or at the option of the issuer or upon certain conditions occurring
under put or similar arrangements, or for otherwise supporting the credit or
liquidity of the securities, and includes credit, reimbursement, marketing,
remarketing, indexing, carrying, interest rate hedge, and subrogation
agreements, and other agreements and arrangements for payment and reimbursement
of the person providing the credit enhancement facility and the security for
that payment and reimbursement.

(I)
"Current operating expenses" or "current expenses" means the lawful
expenditures of a subdivision, except those for permanent improvements and for
payments of debt charges of the subdivision.

(J)
"Debt charges" means the principal, including any mandatory sinking fund
deposits and mandatory redemption payments, interest, and any redemption
premium, payable on securities as those payments come due and are payable. The
use of "debt charges" for this purpose does not imply that any particular
securities constitute debt within the meaning of the Ohio Constitution or other
laws.

(K)
"Financing
costs" means all costs and expenses relating to the authorization, including
any required election, issuance, sale, delivery, authentication, deposit,
custody, clearing, registration, transfer, exchange, fractionalization,
replacement, payment, and servicing of securities, including, without
limitation, costs and expenses for or relating to publication and printing,
postage, delivery, preliminary and final official statements, offering
circulars, and informational statements, travel and transportation,
underwriters, placement agents, investment bankers, paying agents, registrars,
authenticating agents, remarketing agents, custodians, clearing agencies or
corporations, securities depositories, financial advisory services,
certifications, audits, federal or state regulatory agencies, accounting and
computation services, legal services and obtaining approving legal opinions and
other legal opinions, credit ratings, redemption premiums, and credit
enhancement facilities. Financing costs may be paid from any moneys available
for the purpose, including, unless otherwise provided in the proceedings, from
the proceeds of the securities to which they relate and, as to future financing
costs, from the same sources from which debt charges on the securities are paid
and as though debt charges.

(L)
"Fiscal officer" means the following, or, in the case of absence or vacancy in
the office, a deputy or assistant authorized by law or charter to act in the
place of the named officer, or if there is no such authorization then the
deputy or assistant authorized by legislation to act in the place of the named
officer for purposes of this chapter, in the case of the following
subdivisions:

(2)
A municipal
corporation, the city auditor or village clerk or clerk-treasurer, or the
officer who, by virtue of a charter, has the duties and functions provided in
the Revised Code for the city auditor or village clerk or
clerk-treasurer;

(7)
A
joint recreation district, the person designated pursuant to section
755.15 of the Revised
Code;

(8)
A detention
facility district or a district organized under section
2151.65 of the Revised Code or a
combined district organized under sections
2152.41 and
2151.65 of the Revised Code, the
county auditor of the county designated by law to act as the auditor of the
district;

(9)
A township,
a fire district organized under division (C) of section
505.37 of the Revised Code, or a
township police district, the fiscal officer of the township;

(10)
A
joint fire district, the clerk of the board of trustees of that
district;

(11)
A regional
or county library district, the person responsible for the financial affairs of
that district;

(12)
A joint
solid waste management district, the fiscal officer appointed by the board of
directors of the district under section
343.01 of the Revised
Code;

(13)
A joint
emergency medical services district, the person appointed as fiscal officer
pursuant to division (D) of section
307.053 of the Revised
Code;

(14)
A fire and
ambulance district, the person appointed as fiscal officer under division (B)
of section 505.375 of the Revised
Code;

(15)
A
subdivision described in division (MM)(19) of this section, the officer who is
designated by law as or performs the functions of its chief fiscal
officer;

(17)
A
lake facilities authority, the fiscal officer designated under section
353.02 of the Revised Code;

(18)
A regional transportation improvement project, the
county auditor designated under section 5595.10 of the Revised
Code.

(M)
"Fiscal
year" has the same meaning as in section
9.34 of the Revised
Code.

(N)
"Fractionalized interests in public obligations" means participations,
certificates of participation, shares, or other instruments or agreements,
separate from the public obligations themselves, evidencing ownership of
interests in public obligations or of rights to receive payments of, or on
account of, principal or interest or their equivalents payable by or on behalf
of an obligor pursuant to public obligations.

(O)
"Fully registered securities" means securities in certificated or
uncertificated form, registered as to both principal and interest in the name
of the owner.

(P)
"Fund" means
to provide for the payment of debt charges and expenses related to that payment
at or prior to retirement by purchase, call for redemption, payment at
maturity, or otherwise.

(Q)
"General obligation" means securities to the payment of debt charges on which
the full faith and credit and the general property taxing power, including
taxes within the tax limitation if available to the subdivision, of the
subdivision are pledged.

(R)
"Interest" or "interest equivalent" means those payments or portions of
payments, however denominated, that constitute or represent consideration for
forbearing the collection of money, or for deferring the receipt of payment of
money to a future time.

(S)
"Internal Revenue Code" means the "Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A.
1 et seq., as amended, and includes any laws
of the United States providing for application of that code.

(T)
"Issuer" means any public issuer and any nonprofit corporation authorized to
issue securities for or on behalf of any public issuer.

(U)
"Legislation" means an ordinance or resolution passed by a majority affirmative
vote of the then members of the taxing authority unless a different vote is
required by charter provisions governing the passage of the particular
legislation by the taxing authority.

(V)
"Mandatory sinking fund redemption requirements" means amounts required by
proceedings to be deposited in a bond retirement fund for the purpose of paying
in any year or fiscal year by mandatory redemption prior to stated maturity the
principal of securities that is due and payable, except for mandatory prior
redemption requirements as provided in those proceedings, in a subsequent year
or fiscal year.

(W)
"Mandatory
sinking fund requirements" means amounts required by proceedings to be
deposited in a year or fiscal year in a bond retirement fund for the purpose of
paying the principal of securities that is due and payable in a subsequent year
or fiscal year.

(X)
"Net
indebtedness" has the same meaning as in division (A) of section
133.04 of the Revised
Code.

(Y)
"Obligor,"
in the case of securities or fractionalized interests in public obligations
issued by another person the debt charges or their equivalents on which are
payable from payments made by a public issuer, means that public
issuer.

(Z)
"One
purpose" relating to permanent improvements means any one permanent improvement
or group or category of permanent improvements for the same utility,
enterprise, system, or project, development or redevelopment project, or for or
devoted to the same general purpose, function, or use or for which
self-supporting securities, based on the same or different sources of revenues,
may be issued or for which special assessments may be levied by a single
ordinance or resolution. "One purpose" includes, but is not limited to, in any
case any off-street parking facilities relating to another permanent
improvement, and:

(1)
Any number
of roads, highways, streets, bridges, sidewalks, and viaducts;

(3)
In
the case of a county, any number of permanent improvements for courthouse,
jail, county offices, and other county buildings, and related
facilities;

(4)
In the case
of a school district, any number of facilities and buildings for school
district purposes, and related facilities.

(AA)
"Outstanding," referring to securities, means securities that have been issued,
delivered, and paid for, except any of the following:

(1)
Securities canceled upon surrender, exchange, or transfer, or upon payment or
redemption;

(2)
Securities
in replacement of which or in exchange for which other securities have been
issued;

(3)
Securities
for the payment, or redemption or purchase for cancellation prior to maturity,
of which sufficient moneys or investments, in accordance with the applicable
legislation or other proceedings or any applicable law, by mandatory sinking
fund redemption requirements, mandatory sinking fund requirements, or
otherwise, have been deposited, and credited for the purpose in a bond
retirement fund or with a trustee or paying or escrow agent, whether at or
prior to their maturity or redemption, and, in the case of securities to be
redeemed prior to their stated maturity, notice of redemption has been given or
satisfactory arrangements have been made for giving notice of that redemption,
or waiver of that notice by or on behalf of the affected security holders has
been filed with the subdivision or its agent for the purpose.

(BB)
"Paying
agent" means the one or more banks, trust companies, or other financial
institutions or qualified persons, including an appropriate office or officer
of the subdivision, designated as a paying agent or place of payment of debt
charges on the particular securities.

(CC)
"Permanent improvement" or "improvement" means any property, asset, or
improvement certified by the fiscal officer, which certification is conclusive,
as having an estimated life or period of usefulness of five years or more, and
includes, but is not limited to, real estate, buildings, and personal property
and interests in real estate, buildings, and personal property, equipment,
furnishings, and site improvements, and reconstruction, rehabilitation,
renovation, installation, improvement, enlargement, and extension of property,
assets, or improvements so certified as having an estimated life or period of
usefulness of five years or more. The acquisition of all the stock ownership of
a corporation is the acquisition of a permanent improvement to the extent that
the value of that stock is represented by permanent improvements. A permanent
improvement for parking, highway, road, and street purposes includes
resurfacing, but does not include ordinary repair.

(DD)
"Person" has the same meaning as in section
1.59 of the Revised Code and
also includes any federal, state, interstate, regional, or local governmental
agency, any subdivision, and any combination of those persons.

(EE)
"Proceedings" means the legislation, certifications, notices, orders, sale
proceedings, trust agreement or indenture, mortgage, lease, lease-purchase
agreement, assignment, credit enhancement facility agreements, and other
agreements, instruments, and documents, as amended and supplemented, and any
election proceedings, authorizing, or providing for the terms and conditions
applicable to, or providing for the security or sale or award of, public
obligations, and includes the provisions set forth or incorporated in those
public obligations and proceedings.

(FF)
"Public issuer" means any of the following that is authorized by law to issue
securities or enter into public obligations:

(1)
The
state, including an agency, commission, officer, institution, board, authority,
or other instrumentality of the state;

(2)
A
taxing authority, subdivision, district, or other local public or governmental
entity, and any combination or consortium, or public division, district,
commission, authority, department, board, officer, or institution,
thereof;

(2)
Obligations
of a public issuer to make payments under installment sale, lease, lease
purchase, or similar agreements, which obligations may bear interest or
interest equivalent.

(HH)
"Refund" means to fund and retire outstanding securities, including advance
refunding with or without payment or redemption prior to maturity.

(II)
"Register" means the books kept and maintained by the registrar for
registration, exchange, and transfer of registered securities.

(JJ)
"Registrar" means the person responsible for keeping the register for the
particular registered securities, designated by or pursuant to the
proceedings.

(KK)
"Securities" means bonds, notes, certificates of indebtedness, commercial
paper, and other instruments in writing, including, unless the context does not
admit, anticipatory securities, issued by an issuer to evidence its obligation
to repay money borrowed, or to pay interest, by, or to pay at any future time
other money obligations of, the issuer of the securities, but not including
public obligations described in division (GG)(2) of this section.

(LL)
"Self-supporting securities" means securities or portions of securities issued
for the purpose of paying costs of permanent improvements to the extent that
receipts of the subdivision, other than the proceeds of taxes levied by that
subdivision, derived from or with respect to the improvements or the operation
of the improvements being financed, or the enterprise, system, project, or
category of improvements of which the improvements being financed are part, are
estimated by the fiscal officer to be sufficient to pay the current expenses of
that operation or of those improvements or enterprise, system, project, or
categories of improvements and the debt charges payable from those receipts on
securities issued for the purpose. Until such time as the improvements or
increases in rates and charges have been in operation or effect for a period of
at least six months, the receipts therefrom, for purposes of this definition,
shall be those estimated by the fiscal officer, except that those receipts may
include, without limitation, payments made and to be made to the subdivision
under leases or agreements in effect at the time the estimate is made. In the
case of an operation, improvements, or enterprise, system, project, or category
of improvements without at least a six-month history of receipts, the estimate
of receipts by the fiscal officer, other than those to be derived under leases
and agreements then in effect, shall be confirmed by the taxing
authority.

(4)
A regional
water and sewer district organized under Chapter 6119. of the Revised
Code;

(5)
A joint
township hospital district organized under section
513.07 of the Revised
Code;

(6)
A joint
ambulance district organized under section
505.71 of the Revised
Code;

(7)
A joint
recreation district organized under division (C) of section
755.14 of the Revised
Code;

(8)
A detention
facility district organized under section
2152.41 , a district organized
under section 2151.65 , or a combined district
organized under sections
2152.41 and
2151.65 of the Revised
Code;

(9)
A township
police district organized under section
505.48 of the Revised
Code;

(11)
A joint
fire district organized under section
505.371 of the Revised
Code;

(12)
A county
library district created under section
3375.19 or a regional library
district created under section
3375.28 of the Revised
Code;

(13)
A joint
solid waste management district organized under section
343.01 or
343.012 of the Revised
Code;

(14)
A joint
emergency medical services district organized under section
307.052 of the Revised
Code;

(15)
A fire and
ambulance district organized under section
505.375 of the Revised
Code;

(16)
A fire
district organized under division (C) of section
505.37 of the Revised
Code;

(17)
A joint
police district organized under section
505.482 of the Revised
Code;

(18)
A lake
facilities authority created under Chapter 353. of the Revised Code;

(19)
A regional transportation improvement project created
under Chapter 5595. of the Revised Code;

(20)
Any other political subdivision or taxing district or other local public body
or agency authorized by this chapter or other laws to issue Chapter 133.
securities.

(NN)
"Taxing
authority" means in the case of the following subdivisions:

(1)
A
county, a county library district, or a regional library district, the board or
boards of county commissioners, or other legislative authority of a county that
has adopted a charter under Article X, Ohio Constitution, but with respect to
such a library district acting solely as agent for the board of trustees of
that district;

(6)
A
detention facility district or a district organized under section
2151.65 of the Revised Code, a
combined district organized under sections
2152.41 and
2151.65 of the Revised Code, or
a joint emergency medical services district, the joint board of county
commissioners;

(7)
A township,
a fire district organized under division (C) of section
505.37 of the Revised Code, or a
township police district, the board of township trustees;

(8)
A
joint solid waste management district organized under section
343.01 or
343.012 of the Revised Code, the
board of directors of the district;

(9)
A
subdivision described in division (MM)(19) of this section, the legislative or
governing body or official;

(OO)
"Tax limitation" means the "ten-mill limitation" as defined in section
5705.02 of the Revised Code
without diminution by reason of section
5705.313 of the Revised Code or
otherwise, or, in the case of a municipal corporation or county with a
different charter limitation on property taxes levied to pay debt charges on
unvoted securities, that charter limitation. Those limitations shall be
respectively referred to as the "ten-mill limitation" and the "charter tax
limitation."

(PP)
"Tax
valuation" means the aggregate of the valuations of property subject to ad
valorem property taxation by the subdivision on the real property, personal
property, and public utility property tax lists and duplicates most recently
certified for collection, and shall be calculated without deductions of the
valuations of otherwise taxable property exempt in whole or in part from
taxation by reason of exemptions of certain amounts of taxable value under
division (C) of section
5709.01 , tax reductions under
section 323.152 of the Revised Code, or
similar laws now or in the future in effect.

For purposes of section
133.06 of the Revised Code, "tax
valuation" shall not include the valuation of tangible personal property used
in business, telephone or telegraph property, interexchange telecommunications
company property, or personal property owned or leased by a railroad company
and used in railroad operations listed under or described in section
5711.22 , division (B) or (F) of
section 5727.111 , or section
5727.12 of the Revised
Code.

(SS)
"Sales tax
supported" means obligations to the payment of debt charges on which an
additional sales tax or additional sales taxes have been pledged by the taxing
authority of a county pursuant to section
133.081 of the Revised
Code.

(A)
Securities lawfully authorized and issued by an issuer, and fractionalized
interests in public obligations, subject to applicable provisions for
registration or of the proceedings, are negotiable instruments and securities
under Chapters 1303. and 1308. of the Revised Code, notwithstanding that the
promise to pay debt charges on the particular securities or fractionalized
interests may be limited to payment out of a particular fund or the proceeds
from a particular source.

(B)
Unless a judicial action or proceeding challenging the validity of public
obligations or of fractionalized interests in public obligations is commenced
by personal service on the chief executive officer or legal officer or fiscal
officer of the issuer and, if applicable, the obligor, prior to the initial
delivery of the public obligations or the fractionalized interests in public
obligations, the public obligations or the fractionalized interests in them and
the proceedings relating to them are incontestable and the public obligations
or the fractionalized interests in them shall be conclusively considered to be
and to have been issued, secured, entered into, payable, sold, executed, and
delivered, and the proceedings relating to them taken, in conformity with all
legal requirements if all of the following apply:

(1)
They state that they are issued or entered into under or pursuant to
authorizing provisions of law or of any applicable charter or the Ohio
Constitution and comply on their face with those provisions.

(2)
They are issued or entered into for a lawful purpose, as stated in the
securities or the legislation authorizing their issuance, and within any
limitations prescribed by law.

(4)
The transcript of the proceedings contains a statement by the officer having
charge of the applicable records, or by the legal officer or fiscal officer, of
the issuer and, if applicable, of the obligor that all the proceedings were
held in compliance with law, which statement creates a conclusive presumption
that the proceedings were held in compliance with all laws, including, as
applicable, section
121.22 of the Revised Code, and
rules.

(C)
An
individual as such, or as an officer, director, stockholder, or employee of or
owner of any interest in an entity, or relatives or business associates of such
individual, purchasing securities or fractionalized interests in public
obligations as the original or subsequent purchaser, or providing a credit
enhancement facility, or acting as a lessor, trustee, fiscal agent, financial
adviser, paying agent, or registrar related thereto, shall not be deemed to be
interested, either directly or indirectly, solely by reason of such purchase,
provision, or relationship, in such purchase or sale or servicing or in the
contract evidenced by the securities or the fractionalized interests in public
obligations or the credit enhancement facility, for the purpose of any law of
this state that prohibits a public officer, servant, or employee, or his
relatives or business associates, from being interested in any contract of the
particular issuer or obligor.

(D)
As used in this division, "tax compliance payments" means any amounts
determined or estimated as amounts required to be paid to the federal
government in order to maintain the exclusion from gross income for federal
income tax purposes of interest on those obligations, including any amounts
computed at the time to represent the portion of investment income to be
rebated, or amounts in lieu of or in addition to any rebate amount and any
penalty or interest to be paid, for that purpose pursuant to the Internal
Revenue Code; and "public obligations" includes any bond within the meaning of
section 150(a) of the Internal Revenue Code.

Notwithstanding any
other law, an issuer and an obligor may agree, in specific or general terms, to
do or cause or require to be done all things necessary for, and not to do or
permit or authorize to be done anything that would adversely affect, the
exclusion of interest on public obligations or on fractionalized interests in
public obligations from gross income for federal income tax purposes under the
Internal Revenue Code, or the classification or qualification of the public
obligations or the interest on the public obligations or fractionalized
interests in public obligations for, or their exemption from, other treatment
under the Internal Revenue Code, including compliance with the provisions for
tax compliance payments to the United States in accordance with the Internal
Revenue Code. Those actions and covenants and compliance therewith shall be
valid, incontestable, final, and conclusive to the extent that they support
that exclusion from gross income or those classifications, qualifications, or
exemptions. The authorization in this division is solely for the purpose of
satisfying such federal conditions or requirements, and is in addition to and
not a limitation upon other authorization granted by or pursuant to law or the
Ohio Constitution, and does not preclude or exclude any actions or covenants by
the issuer or obligor, or its officer, to satisfy the federal conditions or
requirements for the purpose, including actions and covenants previously taken
or made. Subject to the terms of those covenants, compliance with covenants
referred to in this division by the issuer or obligor and its officers are acts
specifically enjoined by law as duties resulting from their office, trust, and
station for purposes of section
2731.01 of the Revised Code. The
issuer or obligor, and its officers, employees, and agents responsible in the
circumstances, shall do all things necessary or appropriate to comply with such
covenants and shall take all actions to account for, calculate, report, make
available, and make tax compliance payments pursuant to the Internal

Revenue Code to the
extent required to comply with such covenants. In order to protect the tax
exemption of interest or other qualification, classification, or exemption for
tax purposes, and to reduce tax compliance payments:

(1)
Moneys from the funds to which any such interest is credited, and from any fund
that is generally available for the general purposes of the issuer or obligor,
available for the purpose of the securities issue, or available for operating
and maintenance expenses of any improvements financed or refinanced by that
issue or of any system or enterprise of which those improvements are a part,
shall be appropriated and are deemed appropriated for all purposes to the
payment of such amounts pursuant to such covenant, and may be so appropriated
in the absence of such a covenant. Subject to the provisions of the applicable
proceedings and notwithstanding any statutory or administrative limitations on
the use or transfer of those funds or receipts, the appropriate official of the
issuer or obligor may:

(a)
Withdraw
or transfer tax compliance payments from the fund or funds designated by the
issuer or obligor for the purpose, including any bond, improvement, or special
fund, and any bond retirement fund after provision for current debt charges
requirements, or direct the deposit from receipts, and deposit tax compliance
payments in or credit them to the fund or account established for the purpose,
which establishment is hereby authorized, and disburse moneys from that fund or
account for that purpose.

(b)
Withdraw or transfer investment income from any bond or improvement fund, from
any bond retirement fund after provision for current debt charges requirements,
and from any other special fund established with respect to an issue of
securities, and deposit that investment income in or credit that investment
income to any other fund or account.

(2)
An issuer or obligor may invest any proceeds or gross proceeds, as defined in
the Internal Revenue Code, of public obligations or fractionalized interests in
public obligations in tax-exempt bonds of any person authorized to issue
tax-exempt bonds under the Internal Revenue Code, and in any regulated
investment company, the investment in which is treated as an investment in
tax-exempt bonds for purposes of provisions of section 148 of the Internal
Revenue Code, and in any special series of obligations of the United States
made available for purposes of compliance with provisions of section 148 of the
Internal Revenue Code. The authority to invest proceeds under this division is
in addition to and not restricted or conditioned by any other authority of an
issuer to invest its moneys.

Nothing in this
division or in other prior or current provisions of law requires that an issuer
or obligor comply with provisions of federal tax law or regulations to exclude
interest on its public obligations from gross income for federal income tax
purposes or otherwise to have the public obligations or interest thereon
treated in any particular way under federal tax laws, except to the extent, if
any, that the issuer or obligor covenants to do so, and the validity of the
public obligations shall not be adversely affected by the absence of that
compliance or of compliance with any covenants made pursuant to this division.

This division applies
to public obligations and fractionalized interests in public obligations,
outstanding on or entered into prior to, or issued or entered into on or after,
October 30, 1989.

(E)
Notwithstanding any other law, the income from the investment of proceeds of
public obligations or fractionalized interests in public obligations of a
public issuer, or payments received by or on behalf of
a public issuer under section 6341 of the Internal Revenue Code,
26 U.S.C.
6431 , may be credited to the fund or
account in which those proceeds are held, to the fund
or account from which debt charges on those public obligations are paid,
or to the general fund or other fund or account as the public issuer
authorizes, and used for the purposes of that fund or account.

The general assembly hereby finds and declares that the "Tax
Reform Act of 1986" (the "Act") establishes a unified volume ceiling on the
aggregate amount of private activity bonds that can be issued in each state.
The amount of the unified volume ceiling shall be the amount determined as set
forth in section 146(d) of the Internal Revenue Code.

The general assembly further finds and declares that the Act
requires the state to allocate its volume ceiling according to a specified
formula unless a different procedure is established by the governor or general
assembly.

The general assembly further finds and declares that pursuant
to authorization of state legislation the general assembly has, by division
(D)(3) of section
133.02 of the Revised Code,
effective October 30, 1989, provided for delegating such function to the
governor and for further delegation as therein provided, subject to such
prospectively effective actions as may subsequently be taken by the general
assembly.

The general assembly further finds and declares that it desires
to by legislation provide for an efficient, effective, and equitable procedure
under which the state will allocate the unified volume ceiling.

The general assembly therefore finds and declares that it is
necessary to create the joint select committee on volume cap to create a
process for the allocation of the unified volume ceiling.

(A)
Pursuant to section 146(e)(2)(B)(ii) of
the Internal Revenue Code, which provides that a state may by law provide a
different formula for allocating the state ceiling, there is hereby created the
joint select committee on volume cap to provide for the allocation and the
reallocation of the unified volume ceiling among the governmental units (or
other authorities) in the state having authority to issue tax exempt private
activity bonds.

(B)
The committee
shall consist of eight members. Two members shall be from the house of
representatives appointed by the speaker of the house of representatives; two
members shall be from the senate appointed by the president of the senate; and
four members shall be appointed by the governor. Each member shall be selected
for the member's knowledge and experience in tax exempt private activity bonds.
The members shall serve at the pleasure of the appointing authority. A vacancy
shall be filled in the same manner as the original appointment.

(C)
The purpose of the committee shall be to
maximize the economic benefits of the unified volume ceiling to all citizens of
the state. To this end, the joint select committee on volume cap shall:

(1)
Set forth procedures for making
allocations, reallocation and carry forward of the state's unified volume
ceiling in accordance with the Act;

(2)
Develop strategies for allocating and
reallocating the unified volume ceiling which are designed to maximize the
availability of tax exempt private activity bonds among competing sectors of
the state.

(D)
To
provide for the orderly and prompt issuance of private activity bonds, the
committee is authorized to allocate the unified volume ceiling among those
governmental units (or other authorities) in the state having authority to
issue tax exempt private activity bonds. The committee shall reserve a portion
of the unified volume ceiling to be allocated for multi-family rental housing
projects. The committee in determination of unified volume ceiling allocations
and reallocations shall consider the following:

(1)
The interest of the state with regard to
long-term economic development, housing, education, redevelopment, and solid
waste management;

(1)
"Large local
educational agency" and "qualified school construction bond" have the same
meaning as in section 54F of the Internal Revenue Code,
26 U.S.C.
54F .

(2)
"National
limit" means, as applicable, the limitation on the aggregate amount of
qualified school construction bonds that may be issued by the states each
calendar year under section 54F of the Internal Revenue Code.

(3)
"State
portion" means the portion of the national limit allocated to this state
pursuant to section 54F of the Internal Revenue Code.

(1)
To provide
for the orderly and prompt issuance of qualified school construction bonds, the
Ohio school facilities commission, in consultation with the director of budget
and management, shall allocate the state portion among those issuers authorized
to issue qualified school construction bonds. The Ohio school facilities
commission may also accept from any large local educational agency the
allocation received by that agency under section 54F(d)(2) of the Internal
Revenue Code and reallocate it to any issuer or issuers authorized to issue
obligations, including any large local educational agency.

(2)
The factors
to be considered when making allocations of the state portion or reallocations
of any amounts received by a large local educational agency include the
following:

(a)
The interests
of the state with regard to education and economic development;

(3)
The Ohio
school facilities commission, in consultation with the director of budget and
management, shall establish procedures for making allocations, including those
from any carryover of the state portion, and shall adopt guidelines to carry
out the purposes of this section.

(1)
Lawful investments for banks, savings and
loan associations, credit union share guaranty corporations, trust companies,
trustees, fiduciaries, insurance companies, including domestic for life and
domestic not for life, trustees or other officers having charge of sinking and
bond retirement or other funds of the state, subdivisions, and taxing
districts, the commissioners of the sinking fund of the state, the
administrator of workers' compensation, the state teachers, public employees,
and school employees retirement systems, and the Ohio police and fire pension
fund, notwithstanding any other provisions of the Revised Code or rules adopted
pursuant to those provisions by any agency of the state with respect to
investments by them;

(2)
Eligible
as security for the repayment of the deposit of public moneys.

(B)
section
9.96 of the
Revised Code applies to Chapter 133. securities notwithstanding any other
provision in this chapter.

(C)
A
subdivision may enter into an agreement with an agency, including a commission,
officer, board, authority, or other instrumentality, of the state or of the
federal government for the issuance and sale of Chapter 133. securities to that
agency for purposes for which the subdivision is otherwise authorized to issue
those securities, and may issue and sell those securities under procedures and
having terms, other than those provided in other sections of this chapter, that
comply with that agreement and the rules of that agency.

(D)
A subdivision may not issue securities
for the purpose of paying current expenses except for securities authorized to
be issued for that purpose by this chapter or other laws.

(E)
The purpose of Chapter 133. securities
may be stated in general terms, such as "street improvements," or "park
improvements," or "extension and improvement of the waterworks system," or
"school improvements." Any legislation submitting to the electors the question
of issuing securities and the published notice of that election, and the
legislation specifically authorizing securities, shall generally identify the
permanent improvements included in the purpose.

(F)
Securities issued pursuant to section
133.13 of the Revised Code may
include amounts to pay financing costs relating to those securities.

(1)
"Principal amount"
means the aggregate of the amount as stated or provided for in the legislation
authorizing the public obligations as the amount on which interest or interest
equivalent is initially calculated.

(2)
"Principal payments" means the payments
of or on account of the principal amount as defined in division (G)(1) of this
section.

(H)
Interest
or interest equivalent on public obligations may be paid or compounded at such
time as shall be provided in the legislation authorizing the public
obligations.

(A)
As used in this chapter, "net
indebtedness" means, as determined pursuant to this section, the principal
amount of the outstanding securities of a subdivision less the amount held in a
bond retirement fund to the extent such amount is not taken into account in
determining the principal amount outstanding under division (AA) of section
133.01 of the Revised Code. For
purposes of this definition, the principal amount of outstanding securities
includes the principal amount of outstanding securities of another subdivision
apportioned to the subdivision as a result of acquisition of territory, and
excludes the principal amount of outstanding securities of the subdivision
apportioned to another subdivision as a result of loss of territory and the
payment or reimbursement obligations of the subdivision under credit
enhancement facilities relating to outstanding securities.

(B)
In calculating the net indebtedness of a
subdivision, none of the following securities, including anticipatory
securities issued in anticipation of their issuance, shall be considered:

(1)
Securities issued in anticipation of the
levy or collection of special assessments, either in original or refunded form;

(2)
Securities issued in
anticipation of the collection of current revenues for the fiscal year or other
period not to exceed twelve consecutive months, or securities issued in
anticipation of the collection of the proceeds from a specifically identified
voter-approved tax levy;

(3)
Securities issued for purposes described in section
133.12 of the Revised Code;

(5)
Securities issued to pay final
judgments or court-approved settlements under authorizing laws and securities
issued under section
2744.081 of the Revised Code;

(6)
Securities issued to pay costs
of permanent improvements to the extent they are issued in anticipation of the
receipt of, and are payable as to principal from, federal or state grants or
distributions for, or legally available for, that principal or for the costs of
those permanent improvements;

(7)
Securities issued to evidence loans from the state capital improvements fund
pursuant to Chapter 164. of the Revised Code or from the state infrastructure
bank pursuant to section
5531.09 of the Revised Code;

(8)
That percentage of the
principal amount of general obligation securities issued by a county, township,
or municipal corporation to pay the costs of permanent improvements equal to
the percentage of the debt charges on those securities payable during the
current fiscal year that the fiscal officer estimates can be paid during the
current fiscal year from payments in lieu of taxes under section
1728.11 ,
1728.111 ,
5709.42 ,
5709.74 , or
5709.79 of the Revised Code, and
that the legislation authorizing the issuance of the securities pledges or
covenants will be used for the payment of those debt charges; provided that the
amount excluded from consideration under division (B)(8) of this section shall
not exceed the lesser of thirty million dollars or one-half per cent of the
subdivision's tax valuation in the case of a county or township, or one and
one-tenth per cent of the subdivision's tax valuation in the case of a
municipal corporation;

(9)
Securities issued in an amount equal to the property tax replacement payments
received under section
5727.85 or
5727.86 of the Revised Code;

(10)
Securities issued in an
amount equal to the property tax replacement payments received under section
5751.21 or
5751.22 of the Revised Code;

(11)
Other securities, including
self-supporting securities, excepted by law from the calculation of net
indebtedness or from the application of this chapter;

(12)
Any other securities outstanding on
October 30, 1989, and then excepted from the calculation of net indebtedness or
from the application of this chapter, and securities issued at any time to fund
or refund those securities.

(A)
A
municipal corporation shall not incur net indebtedness that exceeds an amount
equal to ten and one-half per cent of its tax valuation, or incur without a
vote of the electors net indebtedness that exceeds an amount equal to five and
one-half per cent of that tax valuation.

(B)
In calculating the net indebtedness of a
municipal corporation, none of the following securities shall be considered:

(1)
Self-supporting securities issued for any
purposes including, without limitation, any of the following general purposes:

(2)
Securities issued
for the purpose of purchasing, constructing, improving, or extending water or
sanitary or surface and storm water sewerage systems or facilities, or a
combination of those systems or facilities, to the extent that an agreement
entered into with another subdivision requires the other subdivision to pay to
the municipal corporation amounts equivalent to debt charges on the securities;

(3)
Securities issued under order
of the director of health or director of environmental protection under section
6109.18 of the Revised Code;

(5)
Securities that are not general
obligations of the municipal corporation;

(6)
Voted securities issued for the purposes
of urban redevelopment to the extent that their principal amount does not
exceed an amount equal to two per cent of the tax valuation of the municipal
corporation;

(7)
Unvoted general
obligation securities to the extent that the legislation authorizing them
includes covenants to appropriate annually from lawfully available municipal
income taxes or other municipal excises or taxes, including taxes referred to
in section 701.06 of the Revised Code but not
including ad valorem property taxes, and to continue to levy and collect those
municipal income taxes or other applicable excises or taxes in, amounts
necessary to meet the debt charges on those securities, which covenants are
hereby authorized;

(8)
Self-supporting securities issued prior to July 1, 1977, under this chapter for
the purpose of municipal university residence halls to the extent that revenues
of the successor state university allocated to debt charges on those
securities, from sources other than municipal excises and taxes, are sufficient
to pay those debt charges;

(9)
Securities issued for the purpose of acquiring or constructing roads, highways,
bridges, or viaducts, for the purpose of acquiring or making other highway
permanent improvements, or for the purpose of procuring and maintaining
computer systems for the office of the clerk of the municipal court to the
extent that the legislation authorizing the issuance of the securities includes
a covenant to appropriate from money distributed to the municipal corporation
pursuant to Chapter 4501., 4503., 4504., or 5735. of the Revised Code a
sufficient amount to cover debt charges on and financing costs relating to the
securities as they become due;

(10)
Securities issued for the purpose of
providing some or all of the funds required to satisfy the municipal
corporation's obligation under an agreement with the board of trustees of the
Ohio police and fire pension fund under section
742.30 of the Revised Code;

(11)
Securities issued for the
acquisition, construction, equipping, and improving of a municipal educational
and cultural facility under division (B)(2) of section
307.672 of the Revised Code;

(A)[Effective until 9/15/2014]A school district shall not incur,
without a vote of the electors, net indebtedness that exceeds an amount equal
to one-tenth of one per cent of its tax valuation, except as provided in
divisions (G) and (H) of this section and in division (C) of section 3313.372
of the Revised Code, or as prescribed in section 3318.052 or 3318.44 of the
Revised Code, or as provided in division (J) of this section.

(A)[Effective 9/15/2014]A school district shall not incur, without a
vote of the electors, net indebtedness that exceeds an amount equal to
one-tenth of one per cent of its tax valuation, except as provided in divisions
(G) and (H) of this section and in division (D) of section
3313.372 of the Revised Code, or as prescribed in section 3318.052 or 3318.44
of the Revised Code, or as provided in division (J) of this section.

(B)
Except as provided in divisions (E), (F), and (I) of this section, a school
district shall not incur net indebtedness that exceeds an amount equal to nine
per cent of its tax valuation.

(C)
A
school district shall not submit to a vote of the electors the question of the
issuance of securities in an amount that will make the district's net
indebtedness after the issuance of the securities exceed an amount equal to
four per cent of its tax valuation, unless the superintendent of public
instruction, acting under policies adopted by the state board of education, and
the tax commissioner, acting under written policies of the commissioner,
consent to the submission. A request for the consents shall be made at least
one hundred twenty days prior to the election at which the question is to be
submitted.

The superintendent of
public instruction shall certify to the district the superintendent's and the
tax commissioner's decisions within thirty days after receipt of the request
for consents.

If the electors do not
approve the issuance of securities at the election for which the superintendent
of public instruction and tax commissioner consented to the submission of the
question, the school district may submit the same question to the electors on
the date that the next special election may be held under section 3501.01 of
the Revised Code without submitting a new request for consent. If the school
district seeks to submit the same question at any other subsequent election,
the district shall first submit a new request for consent in accordance with
this division.

(D)
In
calculating the net indebtedness of a school district, none of the following
shall be considered:

(1)
Securities
issued to acquire school buses and other equipment used in transporting pupils
or issued pursuant to division (D) of section 133.10 of the Revised
Code;

(2)
Securities
issued under division (F) of this section, under section 133.301 of the Revised
Code, and, to the extent in excess of the limitation stated in division (B) of
this section, under division (E) of this section;

(3)
Indebtedness resulting from the dissolution of a joint vocational school
district under section 3311.217 of the Revised Code, evidenced by outstanding
securities of that joint vocational school district;

(4)
Loans, evidenced by any securities, received under sections 3313.483,
3317.0210, and 3317.0211 of the Revised Code;

(E)
A
school district may become a special needs district as to certain securities as
provided in division (E) of this section.

(1)
A
board of education, by resolution, may declare its school district to be a
special needs district by determining both of the following:

(a)
The
student population is not being adequately serviced by the existing permanent
improvements of the district.

(b)
The
district cannot obtain sufficient funds by the issuance of securities within
the limitation of division (B) of this section to provide additional or
improved needed permanent improvements in time to meet the needs.

(2)
The board of
education shall certify a copy of that resolution to the superintendent of
public instruction with a statistical report showing all of the following:

(a)
The
history of and a projection of the growth of the tax valuation;

(c)
The
estimated cost of permanent improvements proposed to meet such projected
needs.

(3)
The
superintendent of public instruction shall certify the district as an approved
special needs district if the superintendent finds both of the following:

(a)
The
district does not have available sufficient additional funds from state or
federal sources to meet the projected needs.

(b)
The
projection of the potential average growth of tax valuation during the next
five years, according to the information certified to the superintendent and
any other information the superintendent obtains, indicates a likelihood of
potential average growth of tax valuation of the district during the next five
years of an average of not less than one and one-half per cent per year. The
findings and certification of the superintendent shall be conclusive.

(4)
An approved
special needs district may incur net indebtedness by the issuance of securities
in accordance with the provisions of this chapter in an amount that does not
exceed an amount equal to the greater of the following:

(a)
Twelve per cent of the sum of its tax valuation plus an amount that is the
product of multiplying that tax valuation by the percentage by which the tax
valuation has increased over the tax valuation on the first day of the sixtieth
month preceding the month in which its board determines to submit to the
electors the question of issuing the proposed securities;

(b)
Twelve per cent of the sum of its tax valuation plus an amount that is the
product of multiplying that tax valuation by the percentage, determined by the
superintendent of public instruction, by which that tax valuation is projected
to increase during the next ten years.

(F)
A
school district may issue securities for emergency purposes, in a principal
amount that does not exceed an amount equal to three per cent of its tax
valuation, as provided in this division.

(1)
A
board of education, by resolution, may declare an emergency if it determines
both of the following:

(a)
School
buildings or other necessary school facilities in the district have been wholly
or partially destroyed, or condemned by a constituted public authority, or that
such buildings or facilities are partially constructed, or so constructed or
planned as to require additions and improvements to them before the buildings
or facilities are usable for their intended purpose, or that corrections to
permanent improvements are necessary to remove or prevent health or safety
hazards.

(2)
Upon the declaration of an emergency, the board of education may, by
resolution, submit to the electors of the district pursuant to section 133.18
of the Revised Code the question of issuing securities for the purpose of
paying the cost, in excess of any insurance or condemnation proceeds received
by the district, of permanent improvements to respond to the emergency
need.

(3)
The
procedures for the election shall be as provided in section 133.18 of the
Revised Code, except that:

(a)
The form of
the ballot shall describe the emergency existing, refer to this division as the
authority under which the emergency is declared, and state that the amount of
the proposed securities exceeds the limitations prescribed by division (B) of
this section;

(b)
The
resolution required by division (B) of section 133.18 of the Revised Code shall
be certified to the county auditor and the board of elections at least one
hundred days prior to the election;

(c)
The
county auditor shall advise and, not later than ninety-five days before the
election, confirm that advice by certification to, the board of education of
the information required by division (C) of section 133.18 of the Revised
Code;

(d)
The board of
education shall then certify its resolution and the information required by
division (D) of section 133.18 of the Revised Code to the board of elections
not less than ninety days prior to the election.

(4)
Notwithstanding division (B) of section 133.21 of the Revised Code, the first
principal payment of securities issued under this division may be set at any
date not later than sixty months after the earliest possible principal payment
otherwise provided for in that division.

(1)
The
board of education may contract with an architect, professional engineer, or
other person experienced in the design and implementation of energy
conservation measures for an analysis and recommendations pertaining to
installations, modifications of installations, or remodeling that would
significantly reduce energy consumption in buildings owned by the district. The
report shall include estimates of all costs of such installations,
modifications, or remodeling, including costs of design, engineering,
installation, maintenance, repairs, measurement and
verification of energy savings, and debt service, forgone residual value
of materials or equipment replaced by the energy conservation measure, as
defined by the Ohio school facilities commission, a baseline analysis of actual
energy consumption data for the preceding three years with the utility baseline
based on only the actual energy consumption data for the preceding twelve
months, and estimates of the amounts by which energy consumption and resultant
operational and maintenance costs, as defined by the commission, would be
reduced.

If the board finds after
receiving the report that the amount of money the district would spend on such
installations, modifications, or remodeling is not likely to exceed the amount
of money it would save in energy and resultant operational and maintenance
costs over the ensuing fifteen years, the board may submit to the commission a
copy of its findings and a request for approval to incur indebtedness to
finance the making or modification of installations or the remodeling of
buildings for the purpose of significantly reducing energy consumption.

The school facilities
commission, in consultation with the auditor of state, may deny a request under
this division by the board of education any school district is in a state of
fiscal watch pursuant to division (A) of section 3316.03 of the Revised Code,
if it determines that the expenditure of funds is not in the best interest of
the school district.

No district board of
education of a school district that is in a state of fiscal emergency pursuant
to division (B) of section 3316.03 of the Revised Code shall submit a request
without submitting evidence that the installations, modifications, or
remodeling have been approved by the district's financial planning and
supervision commission established under section 3316.05 of the Revised
Code.

No board of education of
a school district that, for three or more consecutive years, has been declared
to be in a state of academic emergency under section 3302.03 of the Revised
Code, as that section existed prior to March 22, 2013, and has failed to meet
adequate yearly progress, or has met any condition set forth in division
(A)(2) or
(3) of section 3302.10 of the
Revised Code shall submit a request without first receiving approval to incur
indebtedness from the district's academic distress commission established under
that section, for so long as such commission continues to be required for the
district.

(2)
The school
facilities commission shall approve the board's request provided that the
following conditions are satisfied:

(a)
The
commission determines that the board's findings are reasonable.

(c)
The
installations, modifications, or remodeling are consistent with any project to
construct or acquire classroom facilities, or to reconstruct or make additions
to existing classroom facilities under sections 3318.01 to 3318.20 or sections
3318.40 to 3318.45 of the Revised Code.

Upon receipt of the
commission's approval, the district may issue securities without a vote of the
electors in a principal amount not to exceed nine-tenths of one per cent of its
tax valuation for the purpose of making such installations, modifications, or
remodeling, but the total net indebtedness of the district without a vote of
the electors incurred under this and all other sections of the Revised Code,
except section 3318.052 of the Revised Code, shall not exceed one per cent of
the district's tax valuation.

(3)
So
long as any securities issued under this division remain outstanding, the board
of education shall monitor the energy consumption and resultant operational and
maintenance costs of buildings in which installations or modifications have
been made or remodeling has been done pursuant to this division
. Except as
provided in division (G)(4) of this section, the board shall maintain and
annually update a report in a form and manner
prescribed by the school facilities commission documenting the reductions
in energy consumption and resultant operational and maintenance cost savings
attributable to such installations, modifications, or remodeling.
The resultant operational and maintenance cost savings shall
be certified by the school district treasurer. The report shall be submitted
annually to the commission.

(4)
If the school facilities commission verifies that the
certified annual reports submitted to the commission by a board of education
under division (G)(3) of this section fulfill the guarantee required under
division (B) of section 3313.372 of the Revised Code for three consecutive
years, the board of education shall no longer be subject to the annual
reporting requirements of division (G)(3) of this section.

(H)
With the
consent of the superintendent of public instruction, a school district may
incur without a vote of the electors net indebtedness that exceeds the amounts
stated in divisions (A) and (G) of this section for the purpose of paying costs
of permanent improvements, if and to the extent that both of the following
conditions are satisfied:

(1)
The fiscal
officer of the school district estimates that receipts of the school district
from payments made under or pursuant to agreements entered into pursuant to
section 725.02, 1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41,
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised Code,
or distributions under division (C) of section 5709.43 of the Revised Code, or
any combination thereof, are, after accounting for any appropriate coverage
requirements, sufficient in time and amount, and are committed by the
proceedings, to pay the debt charges on the securities issued to evidence that
indebtedness and payable from those receipts, and the taxing authority of the
district confirms the fiscal officer's estimate, which confirmation is approved
by the superintendent of public instruction;

(2)
The
fiscal officer of the school district certifies, and the taxing authority of
the district confirms, that the district, at the time of the certification and
confirmation, reasonably expects to have sufficient revenue available for the
purpose of operating such permanent improvements for their intended purpose
upon acquisition or completion thereof, and the superintendent of public
instruction approves the taxing authority's confirmation.

The maximum maturity of
securities issued under division (H) of this section shall be the lesser of
twenty years or the maximum maturity calculated under section 133.20 of the
Revised Code.

(I)
A
school district may incur net indebtedness by the issuance of securities in
accordance with the provisions of this chapter in excess of the limit specified
in division (B) or (C) of this section when necessary to raise the school
district portion of the basic project cost and any additional funds necessary
to participate in a project under Chapter 3318. of the Revised Code, including
the cost of items designated by the
school facilities commission as required locally funded initiatives, the cost
of other locally funded initiatives in an amount that does not exceed fifty per
cent of the district's portion of the basic project cost, and the cost for site
acquisition. The
commission shall notify the superintendent of public instruction whenever a
school district will exceed either limit pursuant to this division.

(J)
A
school district whose portion of the basic project cost of its classroom
facilities project under sections 3318.01 to 3318.20 of the Revised Code is
greater than or equal to one hundred million dollars may incur without a vote
of the electors net indebtedness in an amount up to two per cent of its tax
valuation through the issuance of general obligation securities in order to
generate all or part of the amount of its portion of the basic project cost if
the controlling board has approved the school facilities commission's
conditional approval of the project under section 3318.04 of the Revised Code.
The school district board and the Ohio school facilities commission shall
include the dedication of the proceeds of such securities in the agreement
entered into under section 3318.08 of the Revised Code. No state moneys shall
be released for a project to which this section applies until the proceeds of
any bonds issued under this section that are dedicated for the payment of the
school district portion of the project are first deposited into the school
district's project construction fund.

(A)
This section applies only to a school
district that satisfies all of the following conditions:

(1)
The district, prior to the effective date
of this section, undertook a classroom facilities project under section
3318.37 of the Revised Code.

(2)
The district will undertake a
subsequent classroom facilities project under section
3318.37 of the Revised Code that
will consist of a single building housing grades six through twelve.

(3)
The district's project described in
division (A)(2) of this section will include locally funded initiatives that
are not required by the Ohio school facilities commission.

(4)
The district's project described in
division (A)(2) of this section will commence within two years after the
effective date of this section.

(B)
Notwithstanding any other provision of
law to the contrary, a school district to which this section applies may incur
net indebtedness by the issuance of securities in accordance with the
provisions of this chapter in excess of the limit specified in division (B) or
(C) of section
133.06 of the Revised Code when
necessary to raise the school district portion of the basic project cost and
any additional funds necessary to participate in the classroom facilities
project described in division (A)(2) of this section, including the cost of
items designated by the Ohio school facilities commission as required locally
funded initiatives, the cost for site acquisition, and the cost of the locally
funded initiatives that are not required by the commission described in
division (A)(3) of this section, as long as the district's total net
indebtedness after the issuance of those securities does not exceed one hundred
twenty-five per cent of the limit prescribed in division (B) of section
133.06 of the Revised Code and the
electors of the district approve the issuance of those securities.

The school facilities commission shall notify the
superintendent of public instruction whenever a school district will exceed
either limit pursuant to this section.

(A)
A
county shall not incur, without a vote of the electors, either of the
following:

(1)
Net
indebtedness for all purposes that exceeds an amount equal to one per cent of
its tax valuation;

(2)
Net
indebtedness for the purpose of paying the county's share of the cost of the
construction, improvement, maintenance, or repair of state highways that
exceeds an amount equal to one-half of one per cent of its tax
valuation.

(B)
A
county shall not incur total net indebtedness that exceeds an amount equal to
one of the following limitations that applies to the county:

(1)
A
county with a valuation not exceeding one hundred million dollars, three per
cent of that tax valuation;

(2)
A
county with a tax valuation exceeding one hundred million dollars but not
exceeding three hundred million dollars, three million dollars plus one and
one-half per cent of that tax valuation in excess of one hundred million
dollars;

(3)
A
county with a tax valuation exceeding three hundred million dollars, six
million dollars plus two and one-half per cent of that tax valuation in excess
of three hundred million dollars.

(C)
In
calculating the net indebtedness of a county, none of the following securities
shall be considered:

(3)
Securities issued for the purpose of purchasing, constructing, improving, or
extending water or sanitary or surface and storm water sewerage systems or
facilities, or a combination of those systems or facilities, to the extent that
an agreement entered into with another subdivision requires the other
subdivision to pay to the county amounts equivalent to debt charges on the
securities;

(4)
Voted
general obligation securities issued for the purpose of permanent improvements
for sanitary sewerage or water systems or facilities to the extent that the
total principal amount of voted securities outstanding for the purpose does not
exceed an amount equal to two per cent of the county's tax valuation;

(5)
Securities issued for permanent improvements to house agencies, departments,
boards, or commissions of the county or of any municipal corporation located,
in whole or in part, in the county, to the extent that the revenues, other than
revenues from unvoted county property taxes, derived from leases or other
agreements between the county and those agencies, departments, boards,
commissions, or municipal corporations relating to the use of the permanent
improvements are sufficient to cover the cost of all operating expenses of the
permanent improvements paid by the county and debt charges on the
securities;

(7)
Securities issued for the purpose of acquiring or constructing roads, highways,
bridges, or viaducts, for the purpose of acquiring or making other highway
permanent improvements, or for the purpose of procuring and maintaining
computer systems for the office of the clerk of any county-operated municipal
court, for the office of the clerk of the court of common pleas, or for the
office of the clerk of the probate, juvenile, or domestic relations division of
the court of common pleas to the extent that the legislation authorizing the
issuance of the securities includes a covenant to appropriate from moneys
distributed to the county pursuant to division (B) of section 2101.162,
2151.541, 2153.081, 2301.031, or 2303.201 or Chapter 4501., 4503., 4504., or
5735. of the Revised Code a sufficient amount to cover debt charges on and
financing costs relating to the securities as they become due;

(8)
Securities issued for the purpose of acquiring, constructing, improving, and
equipping a county, multicounty, or multicounty-municipal jail, workhouse,
juvenile detention facility, or correctional facility;

(9)
Securities issued for the acquisition, construction, equipping, or repair of
any permanent improvement or any class or group of permanent improvements
enumerated in a resolution adopted pursuant to division (D) of section 5739.026
of the Revised Code to the extent that the legislation authorizing the issuance
of the securities includes a covenant to appropriate from moneys received from
the taxes authorized under section 5739.023 and division (A)(5) of section
5739.026 of the Revised Code an amount sufficient to pay debt charges on the
securities and those moneys shall be pledged for that purpose;

(10)
Securities issued for county or joint county solid waste or hazardous waste
collection, transfer, or disposal facilities, or resource recovery and solid or
hazardous waste recycling facilities, or any combination of those
facilities;

(11)
Securities issued for the acquisition, construction, and equipping of a port
authority educational and cultural facility under section 307.671 of the
Revised Code;

(12)
Securities issued for the acquisition, construction, equipping, and improving
of a municipal educational and cultural facility under division (B)(1) of
section 307.672 of the Revised Code;

(14)
Securities issued for the acquisition, construction, equipping, improving, or
repair of a sports facility, including obligations issued to pay costs of a
sports facility under section 307.673 of the Revised Code;

(15)
Securities issued under section 755.17 of the Revised Code if the legislation
authorizing issuance of the securities includes a covenant to appropriate from
revenue received from a tax authorized under division (A)(5) of section
5739.026 and section 5741.023 of the Revised Code an amount sufficient to pay
debt charges on the securities, and the board of county commissioners pledges
that revenue for that purpose, pursuant to section 755.171 of the Revised
Code;

(16)
Sales
tax supported bonds issued pursuant to section 133.081 of the Revised Code for
the purpose of acquiring, constructing, improving, or equipping any permanent
improvement to the extent that the legislation authorizing the issuance of the
sales tax supported bonds pledges county sales taxes to the payment of debt
charges on the sales tax supported bonds and contains a covenant to appropriate
from county sales taxes a sufficient amount to cover debt charges or the
financing costs related to the sales tax supported bonds as they become
due;

(17)
Bonds
or notes issued under section 133.60 of the Revised Code if the legislation
authorizing issuance of the bonds or notes includes a covenant to appropriate
from revenue received from a tax authorized under division (A)(9) of section
5739.026 and section 5741.023 of the Revised Code an amount sufficient to pay
the debt charges on the bonds or notes, and the board of county commissioners
pledges that revenue for that purpose;

(18)
Securities issued under section 3707.55 of the Revised Code for the acquisition
of real property by a general health district;

(19)
Securities issued under division (A)(3) of section 3313.37 of the Revised Code
for the acquisition of real and personal property by an educational service
center;

(20)
Securities issued for the purpose of paying the costs of acquiring,
constructing, reconstructing, renovating, rehabilitating, expanding, adding to,
equipping, furnishing, or otherwise improving an arena, convention center, or a
combination of an arena and convention center under section 307.695 of the
Revised Code;

(21)
Securities issued for the purpose of paying project
costs under section 307.678 of the Revised Code.

(D)
In
calculating the net indebtedness of a county, no obligation incurred under
division (F) of section 339.06 of the Revised Code shall be
considered.

(A)
In
addition to any power to issue securities under other provisions of the Revised
Code for the purposes, a county may issue revenue securities as authorized in
this section.

(B)
A county may
issue revenue securities to fund or refund revenue securities previously
issued, or for any purposes for which it could issue self-supporting securities
and, without limitation, any of the following general purposes:

(1)
For one or more established sewer
districts, any of the purposes provided in divisions (C)(2)(a) and (b) of
section 133.07 of the Revised Code,
including sanitary facilities, drainage facilities, and prevention or
replacement facilities as defined in section
6117.01 of the Revised Code. For
purposes of this chapter, those sanitary facilities, drainage facilities, and
prevention or replacement facilities are hereby determined to qualify as
facilities described in Section 13 of Article VIII, Ohio Constitution.

(2)
Hospital facilities as defined
in division (E) of section
140.01 of the Revised Code;

(3)
Facilities described in
division (C)(10) of section
133.07 of the Revised Code;

(5)
An arena, a convention center,
or a combination of an arena and convention center under section
307.695 of the Revised Code.

(C)
The county shall
establish rates or charges for the use, availability, or rental of the
facilities to which the financing relates, being the improvement, enterprise,
system, project, or categories of improvements or the operation or function
that the facilities serve, which rates or charges shall be designed to provide
revenues to the county sufficient to pay the costs of all current expenses of
the facilities payable by the county and to pay the debt charges on the
securities and to establish and maintain any contractually required special
funds relating to the securities or the facilities.

(D)
Revenue securities issued under this
section shall not be general obligations of the county. Revenue securities
issued under this section shall be secured only by a pledge of and lien upon
the revenues of the county, derived from its ownership or operation of the
facilities, including those rates or charges or rents and any interest
subsidies or debt charges, grants, or other payments by federal or state
agencies available therefor, and the covenants of the county to maintain
sufficient rentals, rates, and charges to produce revenues sufficient to pay
all current expenses of the facilities payable by the county and to pay the
debt charges on the securities and to establish and maintain any contractually
required special funds relating to the securities or the facilities, and, if
the securities are anticipatory securities, to issue the revenue securities in
anticipation of the issuance of which the revenue securities are issued.
Revenue securities may also be secured by a pledge of and lien on the proceeds
of any securities issued to fund or refund those revenue securities.

(E)
The county officers authorized by the
county taxing authority shall execute the necessary documents, including but
not limited to trust agreements and leases, to provide for the pledge,
protection, and disposition of the pledged revenues from which debt charges and
any special fund deposits are to be paid.

(F)
As long as any of these revenue
securities, in either original or refunded form, remain outstanding, except as
otherwise provided in those documents, all parts of the facilities the revenues
from which are pledged, shall remain under the control of the county taxing
authority, whether any parts of the facilities are leased to or operated by
others or are in or thereafter come within the boundaries of any municipal
corporation, and the facilities shall remain subject to the power and duty of
the taxing authority to fix and collect rates or charges or rents for the use
of facilities.

(G)
The authority
to issue securities of the county under this section for permanent improvements
described in division (B)(2) of this section or division (C)(2)(d) of section
133.07 of the Revised Code may
separately and independently be exercised by a board of county hospital
trustees established under section
339.02 of the Revised Code for
those permanent improvements and related operations under the control of that
board.

(H)
Sections
9.98 to
9.983 of the
Revised Code apply to securities issued under this section, notwithstanding any
other provision in this chapter.

(2)
"Authorizing proceedings"
means the resolution, legislation, trust agreement, certification, and other
agreements, instruments, and documents, as amended and supplemented,
authorizing, or providing for the security or sale or award of, sales tax
supported bonds, and includes the provisions set forth or incorporated in those
bonds and proceedings;

(3)
"County
sales tax" means any sales tax levied by the taxing authority of a county
pursuant to section
5739.021 or
5739.026 of the Revised Code, and
any tax levied by that taxing authority upon storage, use, or consumption under
section 5741.021 or
5741.023 of the Revised Code.
However, "county sales tax" does not include a sales tax subject to referendum
or a sales tax that was adopted as an emergency measure and is subject to
initiative petition under section
5739.022 of the Revised Code.

(5)
"Refunding
bonds" means sales tax supported bonds issued to provide for the refunding of
the sales tax supported bonds referred to in this section as refunded
obligations.

(B)
The
taxing authority of a county which has levied a county sales tax for the
purpose of providing additional general revenues of the county pursuant to
Chapter 5739. of the Revised Code may anticipate the receipts of such tax and
issue sales tax supported bonds of the county in the principal amount necessary
to pay the costs of financing any permanent improvement as defined in division
(CC) of section
133.01 of the Revised Code, or to
refund any refunded obligations, provided that the taxing authority certifies
that the annual debt charges on the sales tax supported bonds, or on the sales
tax supported bonds being anticipated by anticipation notes, do not exceed the
estimated annual county sales tax receipts. The maximum aggregate amount of
sales tax supported bonds that may be outstanding at any time in accordance
with their terms shall not exceed an amount which requires or is estimated to
require payments from sales tax receipts of debt charges on the sales tax
supported bonds, or, in the case of anticipation notes, projected debt charges
on the sales tax supported bonds anticipated, in any calendar year in an amount
exceeding the county sales tax in anticipation of which the bonds or
anticipation notes are issued as estimated by the fiscal officer based on
general sales tax receipts averaged for the prior two calendar years prior to
the year in which the sales tax supported bonds are issued, and annualized for
any increase in the county sales tax which may have been levied in part during
such period or levied after such period. A taxing authority may at any time
issue renewal anticipation notes, issue sales tax supported bonds to pay
renewal anticipation notes, and, if it considers refunding expedient, issue
refunding sales tax supported bonds whether the refunded obligations have or
have not matured. The refunding sales tax supported bonds shall be sold and the
proceeds needed for such purpose applied in the manner provided in the
authorizing proceedings of the taxing authority. The maximum maturity of sales
tax supported bonds shall be calculated by the fiscal officer in accordance
with section
133.20 of the Revised Code, and
such calculation shall be filed with the taxing authority of the county prior
to passage of a bond authorizing resolution. If the county sales tax pledged to
the payment of the sales tax supported bonds has a stated expiration date, the
final principal maturity date of the sales tax supported bonds shall not extend
beyond the final year of collection of the county sales tax pledged to the
payment of the sales tax supported bonds.

(C)
Every issue of sales tax supported bonds
outstanding in accordance with their terms shall be payable out of the sales
tax receipts received by the county or proceeds of sales tax supported bonds,
renewal anticipation notes, or refunding sales tax supported bonds which may be
pledged for such payment in the authorizing proceedings. The pledge shall be
valid and binding from the time the pledge is made, and the county sales tax
receipts and proceeds so pledged and thereafter received by the county shall
immediately be subject to the lien of that pledge without any physical delivery
of the county sales tax receipts or proceeds or further act. The lien of any
pledge is valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against the county, whether or not such parties
have notice of the lien. Neither the resolution nor any trust agreement by
which a pledge is created or further evidenced need be filed or recorded except
in the records of the taxing authority.

(D)
Sales tax supported bonds issued under
this section do not constitute a general obligation debt, or a pledge of the
full faith and credit, of the state, the county, or any other political
subdivision of the state, and the holders or owners of the bonds have no right
to have taxes levied by the general assembly or property taxes levied by the
taxing authority of any political subdivision of the state, including the
taxing authority of the county, for the payment of debt charges. Unless paid
from other sources, sales tax supported bonds are payable from the sales tax
receipts pledged for their payment as authorized by this section. All sales tax
supported bonds shall contain on their face a statement to the effect that the
sales tax supported bonds, as to debt charges, are not debts or obligations of
the state and are not general obligation debts of any political subdivision of
the state, but, unless paid from other sources, are payable from the sales tax
receipts pledged for their payment. The utilization and pledge of the sales tax
receipts and proceeds of sales tax supported bonds, renewal anticipation notes,
or refunding sales tax supported bonds for the payment of debt charges is
determined by the general assembly to create a special obligation.

(E)
The sales tax supported bonds shall bear
such date or dates, shall be executed in the manner, and shall mature at such
time or times, in the case of any anticipation notes not exceeding ten years
from the date of issue of the original anticipation notes and in the case of
any sales tax supported bonds or of any refunding sales tax supported bonds,
not exceeding the maximum maturity certified to the taxing authority pursuant
to division (B) of this section, all as the authorizing proceedings may
provide. The sales tax supported bonds shall bear interest at such rates, or at
variable rate or rates changing from time to time, in accordance with
provisions in the authorizing proceedings, be in such denominations and form,
either coupon or registered, carry such registration privileges, be payable in
such medium of payment and at such place or places, and be subject to such
terms of redemption, as the taxing authority may authorize or provide. The
sales tax supported bonds may be sold at public or private sale, and at, or at
not less than, the price or prices as the taxing authority determines. If any
officer whose signature or a facsimile of whose signature appears on any sales
tax supported bonds or coupons ceases to be such officer before delivery of the
sales tax supported bonds or anticipation notes, the signature or facsimile
shall nevertheless be sufficient for all purposes as if that officer had
remained in office until delivery of the sales tax supported bonds. Whether or
not the sales tax supported bonds are of such form and character as to be
negotiable instruments under Title XIII of the Revised Code, the sales tax
supported bonds shall have all the qualities and incidents of negotiable
instruments, subject only to any provisions for registration. Neither the
members of the board of the taxing authority nor any person executing the sales
tax supported bonds shall be liable personally on the sales tax supported bonds
or be subject to any personal liability or accountability by reason of their
issuance.

(F)
Notwithstanding any
other provision of this section, sections
9.98 to
9.983 ,
133.02 ,
133.70 , and
5709.76 , and division (A) of
section 133.03 of the Revised Code apply to
the sales tax supported bonds. Sales tax supported bonds issued under this
section need not comply with any other law applicable to notes or bonds but the
authorizing proceedings may provide that divisions (B) to (E) of section
133.25 of the Revised Code apply to
the sales tax supported bonds or anticipation notes.

(G)
Any authorized proceedings may contain
provisions, subject to any agreements with holders as may then exist, which
shall be a part of the contract with the holders, as to the pledging of any or
all of the county's anticipated sales tax receipts to secure the payment of the
sales tax supported bonds; the use and disposition of the sales tax receipts of
the county; the crediting of the proceeds of the sale of sales tax supported
bonds to and among the funds referred to or provided for in the authorizing
proceedings; limitations on the purpose to which the proceeds of the sales tax
supported bonds may be applied and the pledging of portions of such proceeds to
secure the payment of the sales tax supported bonds or of anticipation notes;
the agreement of the county to do all things necessary for the authorization,
issuance, and sale of those notes anticipated in such amounts as may be
necessary for the timely payment of debt charges on any anticipation notes;
limitations on the issuance of additional sales tax supported bonds; the terms
upon which additional sales tax supported bonds may be issued and secured; the
refunding of refunded obligations; the procedure by which the terms of any
contract with holders may be amended, and the manner in which any required
consent to amend may be given; securing any sales tax supported bonds by a
trust agreement or other agreement; and any other matters, of like or different
character, that in any way affect the security or protection of the sales tax
supported bonds or anticipation notes.

(H)
The taxing authority of a county may not
repeal, rescind, or reduce any portion of a county sales tax pledged to the
payment of debt charges on sales tax supported bonds issued by the county while
such sales tax supported bonds remain outstanding, and no portion of a county
sales tax pledged to the payment of debt charges on sales tax supported bonds
shall be subject to repeal or reduction by the electorate of the county or by
the taxing authority of the county while such sales tax supported bonds are
outstanding.

(A)
A board of county commissioners of a
county in which a county land reutilization corporation is organized under
Chapter 1724. of the Revised Code, upon the written request of the county
treasurer, may issue securities in anticipation of the collection of the
current taxes that are not paid on or before the last day on which such taxes
may be paid without penalty or that have become delinquent. The aggregate
principal amount of such securities shall not exceed ninety per cent of the
difference between the following amounts:

(1)
The amount of the current taxes that constitutes current year unpaid taxes or
current year delinquent taxes on the date securities under this section are
issued;

(2)
To the extent
ascertainable by the county treasurer, the amount of current year unpaid taxes
or current year delinquent taxes that have been collected during the period
commencing on the day immediately following the last day the current year
unpaid taxes or current year delinquent taxes could have been paid without
penalty and ending with the business day immediately preceding the day on which
an agreement for the sale of the securities is executed.

(B)
Securities issued under this section
shall be issued not later than the first day of December of the year in which
such current taxes were not paid when due, and shall mature not later than the
thirty-first day of December of the third year following the year in which the
current taxes were not paid when due.

(C)
Proceeds from the sale of the securities
not applied to the payment of any financing costs shall be disbursed by the
county treasurer to the taxing authorities that levied the taxes in the same
manner as such taxes would have been disbursed had such taxes been paid when
due.

(D)
The county officers
authorized by the county taxing authority shall execute the necessary
documents, including, but not limited to, trust agreements and other agreements
and certifications, to provide for the pledge, protection, and disposition of
the pledged revenues from which debt charges on the securities issued under
this section are to be paid.

(E)
Anticipation securities issued under this section shall not be general
obligations of the county. Anticipation securities issued under this section
shall be secured only by a pledge of and lien upon the delinquent real property
taxes and assessments, the collection of which is being anticipated by the
issuance of the securities in accordance with this section, and any securities
issued to fund or refund those securities. The pledge shall be valid and
binding from the time the pledge is made, and the tax receipts and proceeds
pledged and thereafter received by the county treasurer shall immediately be
subject to the lien of that pledge without any physical delivery of those tax
receipts or proceeds or further act. The lien of any pledge is valid and
binding as against all parties having claims of any kind in tort, contract, or
otherwise against the county, whether or not such parties have notice of the
lien. Neither the resolution nor any trust agreement by which a pledge is
created or further evidenced need be filed or recorded except in the records of
the county taxing authority.

(F)
As long as any securities issued under this section, in either original or
refunded form, remain outstanding, except as otherwise provided in those
documents, the delinquent real property taxes and assessments pledged to the
payment of debt charges on the securities shall remain under the control of the
county taxing authority and shall not be appropriated other than in accordance
with division (H) of this section.

(G)
Sections
9.98 to
9.983 of the
Revised Code apply to securities issued under this section, notwithstanding any
other provision in this chapter.

(H)
The amounts from the collection of the
delinquent real property taxes and assessments anticipated by the securities
and needed to pay debt charges on the securities issued under this section
shall be considered appropriated for that purpose, and other appropriations
from those sources by the county taxing authority shall be limited to the
balance available after deducting the amount needed to pay those debt charges.
The portions of those amounts as received and to be applied to those debt
charges shall be deposited and set aside in an account for that purpose in the
bond retirement fund in the amounts and at the times required to pay those debt
charges as provided for by the authorizing legislation, or as otherwise
provided by law.

(I)
As used in
this section, "current taxes" has the same meaning as in section
323.01 of the Revised Code, and
"current year unpaid taxes" and "current year delinquent taxes" have the same
meanings as in section
321.341 of the Revised Code.

(A)
Unless it is a township that has adopted a limited home rule government under
Chapter 504. of the Revised Code, a township shall not incur net indebtedness
that exceeds an amount equal to five per cent of its tax valuation and, except
as specifically authorized by section
505.262 of the Revised Code or
other laws, shall not incur any net indebtedness unless authorized by vote of
the electors.

(B)
A
township that has adopted a limited home rule government under Chapter 504. of
the Revised Code shall not incur net indebtedness that exceeds an amount equal
to ten and one-half per cent of its tax valuation, or incur without a vote of
the electors net indebtedness that exceeds an amount equal to five and one-half
per cent of that tax valuation. In calculating the net indebtedness of a
township that has adopted a limited home rule government, none of the following
securities shall be considered:

(2)
Securities issued for the purpose of purchasing, constructing, improving, or
extending water or sanitary or surface and storm water sewerage systems or
facilities, or a combination of those systems or facilities, to the extent that
an agreement entered into with another subdivision requires the other
subdivision to pay to the township amounts equivalent to debt charges on the
securities;

(4)
Voted securities issued for the purposes of redevelopment to the extent that
their principal amount does not exceed an amount equal to two per cent of the
tax valuation of the township;

(5)
Securities issued for the purpose of acquiring or constructing roads, highways,
bridges, or viaducts, or for the purpose of acquiring or making other highway
permanent improvements, to the extent that the resolution of the board of
township trustees authorizing the issuance of the securities includes a
covenant to appropriate from money distributed to the township under Chapter
4501., 4503., 4504., or 5735. of the Revised Code a sufficient amount to cover
debt charges on and financing costs relating to the securities as they become
due;

(C)
In
calculating the net indebtedness of any township, no obligation incurred under
division (B) of section
513.17 or under section
505.261 ,
505.264 ,
505.265 ,
505.267 , or
505.37 of the Revised Code, or in
connection with a project undertaken pursuant to Section
515.03 of H.B. 66 of the 126th
general assembly , Section 555.10 of H.B. 67 of the 127th general
assembly, or Section
755.20 of H.B. 153 of the 129th
general assembly shall be considered.

(A)
In
anticipation of the collection of current property tax revenues in and for any
fiscal year, the taxing authority of any subdivision may issue securities, but
the aggregate principal amount of such securities shall not exceed one-half of
the amount that the budget commission estimates the subdivision will receive
from property taxes in that fiscal year and prior to the last day of the sixth
month following the month in which the securities are issued, other than taxes
to be received for the payment of debt charges or allocated to debt charges on
securities issued pursuant to division (C) of this section, and less all
advances. When a partial, semiannual, or final property tax settlement is
delayed, securities may also be issued in anticipation of the receipt of
property taxes levied or collected for debt charges to the extent necessary to
meet such debt charges but not in excess of such estimated receipts, less all
advances. The securities issued pursuant to this division (A) shall mature not
later than the last day of the sixth month following the month in which the
securities are issued and in any case not later than the last day of the fiscal
year in which they are issued.

(B)
In
anticipation of the collection of current revenues in and for any fiscal year
from any source or combination of sources, including distributions of any
federal or state moneys, other than the proceeds of property taxes levied by
the subdivision, the taxing authority of any subdivision may issue securities,
but the aggregate principal amount of such securities shall not exceed one-half
of the amount estimated by the fiscal officer to be received by the subdivision
from such sources during the remainder of such fiscal year, less advances and
prior collections.

(C)
In
anticipation of the collection of current property tax revenues in and for any
fiscal year, the taxing authority of a county, municipal corporation, township,
or school district may issue securities, but the aggregate principal amount of
those securities and of any securities issued pursuant to division (A) of this
section outstanding at the time of issuance shall not exceed one-half of the
amount that the budget commission estimates the subdivision will receive from
all property taxes that are to be distributed to the subdivision from all
settlements of taxes that are to be made in the remainder of that fiscal year,
other than taxes to be received for the payment of debt charges, and less all
advances.

(D)
When the tax
settlement scheduled under division (B) of section
321.24 of the Revised Code is
delayed pursuant to division (E) of that section, the taxing authority of a
school district may issue property tax anticipation securities against the
taxes to be included in that settlement, but the aggregate principal amount of
all securities outstanding against those taxes shall not exceed ninety per cent
of the amount estimated to be received from that settlement by the budget
commission, other than taxes to be received for the payment of debt charges,
and less all advances. The securities issued pursuant to this division (D)
shall mature on or before the next ensuing thirty-first day of
August.

(E)
This
division applies to all securities authorized by this section.

(1)
The
amounts from the sources anticipated needed to pay debt charges and financing
costs shall be considered appropriated for that purpose, and other
appropriations from those sources by the taxing authority shall be limited to
the balance available after deducting the amount to pay those debt charges and
financing costs. The portions of those amounts as received and to be applied to
those debt charges shall be deposited and set aside in an account for the
purpose in the bond retirement fund in the amounts and at the times required to
pay those debt charges as provided for by the authorizing legislation or
otherwise provided by law.

(2)
Except as otherwise provided in division (H) of this section, the securities
shall not be issued prior to the first day and, except as otherwise provided in
divisions (A) and (D) of this section, shall mature not later than the last day
of the fiscal year for which the revenues are anticipated.

(3)
The
proceeds of the principal amount of the securities shall be used only for the
purposes for which the amounts anticipated were levied, collected, distributed,
and appropriated, and for financing costs related to those
securities.

(4)
Property
taxes include distributions from the state in payment of credits against or
partial exemptions from, or reduction of, property taxes.

(5)
If
for any reason debt charges on securities authorized by this section are not
paid by the subdivision in the fiscal year when due, the taxing authority of
the subdivision shall include in its next annual appropriation measure an
amount sufficient to pay those debt charges, and the county auditor and county
treasurer shall withhold, in a custodial account, amounts due the subdivision
from the sources anticipated until such amount is accumulated by those officers
and they directly pay or provide, through the paying agent or otherwise, for
the payment of those debt charges.

(F)
The
authority to issue securities under divisions (A) and (B) of this section may
be exercised by any board of library trustees of a public library, or board of
park commissioners of a township, to which the budget commission has allotted a
share of the local government fund under section
5747.51 of the Revised Code or of
the public library fund under section 5747.48 of the Revised
Code.

(G)
The taxing
authority of a school district issuing securities under division (A), (C), or
(D) of this section shall in the legislation authorizing the securities affirm
the levy of, or covenant to levy, the anticipated property taxes to be
collected in the following year.

(H)
The
taxing authority of a school district may issue securities authorized by this
section on or after the tenth day preceding the first day of the fiscal year
for which the revenues are anticipated; provided, that if the taxing authority
of a school district issues securities authorized by this section prior to the
first day of the fiscal year for which the revenues are anticipated:

(1)
None of the proceeds received by the school district from the sale of the
securities shall be considered available for appropriation prior to the first
day of the fiscal year for which the revenues are anticipated; and

(2)
None of the proceeds received by the school district from the sale of the
securities shall be expended prior to the first day of the fiscal year for
which the revenues are anticipated.

If the taxing authority of a county determines that the funds
allocated for current expenses of the county are insufficient to pay those
current expenses for the current fiscal year and the cost of the county
auditor's assessment of real estate required by section
5713.01 of the Revised Code, the
taxing authority may issue general obligation securities of the county in an
amount necessary to pay the total estimated cost of that assessment. The
proceeds of the principal of those securities shall be appropriated only for
the cost of the assessment and financing costs. The last maturity of those
securities shall not be later than seventy-two months from the date of initial
issuance of securities for the purpose.

(A)
If the tax commissioner determines that
funds are not otherwise available for the purpose, the taxing authority of a
subdivision having general property taxing power may issue general obligation
securities in case of any of the following:

(1)
An epidemic or threatened epidemic, or
during an unusual prevalence of a dangerous communicable disease, to defray
those expenses that the board of health having jurisdiction within the
subdivision considers necessary to prevent the spread of the epidemic or
disease;

(2)
The destruction of an
essential permanent improvement by fire, flood, or extraordinary catastrophe,
to provide temporary necessary facilities in place of that permanent
improvement;

(3)
A special
election called after the adoption of the annual appropriation measure, to pay
the costs of that election payable by the subdivision;

(4)
Within a quarantined area, the outbreak
or infestation of the pest for which the quarantined area was established, to
defray those expenses that the subdivision considers necessary to combat the
pest, including removal or complete destruction of plants that are dead or
dying from the pest.

(B)
One-half of the principal amount of the
securities issued under this section prior to the effective date of this
amendment shall mature on the first day of June next following the next
February tax settlement at which, in accordance with the statutory tax budget
procedure, a property tax to pay the debt charges on the securities can be
included in the budget, and the other one-half of the principal amount shall
mature on the next following first day of December. The last maturity of the
securities issued under this section on and after the effective date of this
amendment shall be not later than the last day of December of the tenth year
following the year in which the securities are first issued. A property tax
shall be levied to pay debt charges on any of those securities.

If the special assessments are to be paid in one annual
installment, the taxing authority of a subdivision may issue securities in
anticipation of its levy or collection of special assessments to pay the costs
of lighting, sprinkling, sweeping, cleaning, providing related or similar
services or the services described in section
727.011 of the Revised Code, or of
removing snow, ice, and debris from, or treating the surface of, streets,
alleys, and public ways and places.

Such securities shall not be general obligations of the issuing
subdivision, and shall not pledge to the payment of debt charges any receipts
other than the special assessments anticipated, except that a municipal
corporation, without incurring debt subject to direct or indirect debt
limitations, may also pledge and apply proceeds of its municipal income tax to
pay those debt charges. No property tax shall be levied or pledged for the
payment of debt charges on the securities. The securities shall mature no later
than the last day of December of the year in which the special assessments
anticipated are scheduled to be collected.

The legislation authorizing the securities shall appropriate
the special assessments anticipated, and such special assessments shall be
deemed to be pledged and appropriated, first to the payment of the debt charges
on the securities. After provision has been made for the payment in full of
those debt charges, the balance of the special assessments may be appropriated
and applied for the purposes for which they were levied.

(A)
The taxing authority of a subdivision may
issue securities for the purpose of providing funds with which to pay one or
more final judgments rendered against the subdivision, including settlements of
claims approved by a court, if the fiscal officer of the subdivision certifies
to the taxing authority that the subdivision is unable, within the limits of
its other funds that have been appropriated and are available for the purpose,
to pay the final judgment or judgments. The principal amount of the securities
issued may not exceed the aggregate of the judgments plus interest on the
judgments to the approximate date on which the proceeds of the securities will
become available, costs and expenses assessed or taxed against and defense
costs of the subdivision, and other costs, including financing costs, permitted
by this chapter to be paid from the proceeds of securities.

(B)
Securities issued under division (A) of
this section may as determined by the taxing authority be either:

(2)
Special obligation securities that are
payable only out of the particular taxes and revenues pledged, other than ad
valorem property taxes, and that are not general obligations of the
subdivision.

(C)
The
last maturity of bonds issued pursuant to this section shall be not later than
the last day of December of the twenty-fifth year following the year in which
securities for the purpose are first issued.

(A)
The taxing authority of any subdivision
may issue securities of the subdivision for the purpose of paying all or any
portion of the costs of any permanent improvement that the subdivision is
authorized, alone or in cooperation with other persons, to acquire, improve, or
construct.

Securities may be issued prior to the completion of any
proceedings required to authorize the permanent improvement or the expenditure
of the proceeds of the securities. In addition, proceedings for the issuance of
securities for any permanent improvement for which special assessments are not
to be levied and collected may authorize the improvement and the expenditure of
the proceeds of the securities and any other funds available and appropriated
for the improvement, without the prior or subsequent necessity of instituting
or completing any other proceedings that other provisions of the Revised Code
that contemplate that special assessments may be levied and collected for that
type of improvement otherwise might require before an authorization of that
type.

(B)
Costs of
permanent improvements that may be financed with, and paid from the proceeds
of, securities include, without limitation as to other costs properly allocable
to the permanent improvement, the costs of: acquiring, constructing,
reconstructing, rehabilitating, installing, remodeling, renovating, enlarging,
equipping, furnishing, or otherwise improving permanent improvements; site
clearance, improvement, and preparation; acquisition of real or personal
property; indemnity and surety bonds and premiums on insurance; all related
direct administrative expenses and allocable portions of direct costs of the
subdivision; engineering, architectural, legal, and other consulting and
professional services; designs, plans, specifications, feasibility or rate
studies, appraisals, surveys, and estimates of cost; interest or interest
equivalent on the securities, whether capitalized or not; financing costs;
title work and title commitment, insurance, and guaranties; amounts necessary
to establish any debt service reserve or other reserves as required by the
proceedings for the securities; audits; the reimbursement of moneys advanced or
applied by or borrowed from any person, whether to or by the subdivision or
others, from whatever source provided, for the payment of any item or items of
cost of the permanent improvements; and all other expenses necessary or
incidental to planning or determining feasibility or practicability with
respect to permanent improvements or necessary or incidental to the
acquisition, construction, reconstruction, rehabilitation, installation,
remodeling, renovating, enlargement, equipping, furnishing, or other
improvement of the permanent improvements, the financing of the permanent
improvements, and the placing of the permanent improvements in condition for
use and operation, and all like or related costs, including any one, part, or
combination of, or the subdivision's share of, those costs and expenses.

(A)
A county or township may issue, for
itself or on behalf of any other county or township or in a joint exercise of
their powers, self-supporting securities for either or both of the following
purposes:

(1)
Paying the costs of any
permanent improvements that it is authorized to acquire, improve, or construct;

(2)
Making loans or otherwise
providing, by cooperative action, financial assistance to one or more counties
or townships to assist such other counties or townships in paying the costs of
permanent improvements.

(B)
Self-supporting securities issued under
this section shall not be general obligations of the issuer, but shall be
secured by any of the following:

(1)
A pledge
of and a lien upon the revenues of the issuer, derived from ownership or
operation of the permanent improvements, including those rates, charges, or
rents and any interest subsidies or debt charges, grants, or other payments by
federal or state agencies therefor, and the covenants of the issuer to maintain
sufficient rates, charges, and rentals to produce revenues sufficient to pay
all current expenses of the permanent improvements payable by the issuer, and
to pay debt service charges on the securities and establish and maintain any
contractually required special funds relating to the securities, and, if the
securities are anticipatory securities, to issue the self-supporting securities
for which the anticipatory securities are issued;

(2)
Amounts received from other counties or
townships as repayment of loans or other cooperative financial assistance made
to them from the proceeds of such self-supporting securities;

(3)
A pledge of and lien on the proceeds of
any securities issued to fund or refund those self-supporting securities.

(C)
A county or
township issuing self-supporting securities under this section shall do so by
resolution, and such resolution shall set forth the terms of the securities,
the date of the securities, the amount to be issued, and the maximum rate of
interest. The securities shall mature at such times not exceeding the maximum
limits specified for general obligations in section
133.20 of the Revised Code, and
shall be executed in such manner as the resolution provides. The securities
shall be negotiable, bear interest at such rate or rates, be in such
denominations, be in such form, carry such registration privileges, be payable
in such medium of payment at such place or places, and be subject to such terms
of redemption as the issuer may authorize. The securities may be sold at public
or private sale.

(D)
Self-supporting securities issued under this section, their transfer, and any
income therefrom, including any profit made on the sale thereof, shall at all
times be free from taxation within the state.

(E)
Costs of permanent improvements that may
be financed with, and paid from the proceeds of, self-supporting securities
issued under this section include, without limitation as to other costs
properly allocable to the permanent improvements, the costs of: acquiring,
constructing, reconstructing, rehabilitating, installing, remodeling,
renovating, enlarging, equipping, furnishing, or otherwise improving permanent
improvements; site clearance, improvement, and preparation; acquisition of real
or personal property; indemnity and surety bonds and premiums on insurance; all
related direct administrative expenses and allocable portions of direct costs
of the issuer; engineering, architectural, legal, and other consulting and
professional services; designs, plans, specifications, feasibility or rate
studies, appraisals, surveys, and estimates of cost; interest or interest
equivalent on the securities, whether capitalized or not; financing costs;
title work and title commitment, insurance, and guaranties; amounts necessary
to establish any debt service reserve or other reserves as required by the
proceedings for the securities; audits; the reimbursement of moneys advanced or
applied by or borrowed from any person, whether to or by the issuer or others,
from whatever source provided, for the payment of any item or items of cost of
the permanent improvements; and all other expenses necessary or incidental to
planning or determining feasibility or practicability with respect to permanent
improvements or necessary or incidental to the acquisition, construction,
reconstruction, rehabilitation, installation, remodeling, renovation,
enlargement, equipping, furnishing, or other improvement of the permanent
improvements, the financing of the permanent improvements, and the placing of
the permanent improvements in condition for use and operation, and all like or
related costs, including any one, part, or combination of, or the issuer's
share of, those costs and expenses.

(A)
The taxing authority of a detention
facility district, of a district organized under section
2151.65 of the Revised Code, or of
a combined district organized under sections
2152.41 and
2151.65 of the Revised Code that
has entered into an agreement under division (C) of section
2151.655 of the Revised Code may
issue self-supporting securities to pay the cost of permanent improvements of
the district. Costs of permanent improvements that may be financed with, and
paid from the proceeds of, self-supporting securities issued under this section
include, without limitation as to other costs properly allocable to the
permanent improvements, the costs of: acquiring, constructing, reconstructing,
rehabilitating, installing, remodeling, renovating, enlarging, equipping,
furnishing, or otherwise improving permanent improvements; site clearance,
improvement, and preparation; acquisition of real or personal property;
indemnity and surety bonds and premiums on insurance; all related direct
administrative expenses and allocable portions of direct costs of the taxing
authority; engineering, architectural, legal, and other consulting and
professional services; designs, plans, specifications, feasibility or rate
studies, appraisals, surveys, and estimates of cost; interest or interest
equivalent on the securities, whether capitalized or not; financing costs;
title work and title commitment, insurance, and guaranties; amounts necessary
to establish any debt service reserve or other reserves as required by the
proceedings for the securities; audits; the reimbursement of moneys advanced or
applied by or borrowed from any person, whether to or by the taxing authority
or others, from whatever source provided, for the payment of any item or items
of cost of the permanent improvements; and all other expenses necessary or
incidental to planning or determining feasibility or practicability with
respect to permanent improvements or necessary or incidental to the
acquisition, construction, reconstruction, rehabilitation, installation,
remodeling, renovation, enlargement, equipping, furnishing, or other
improvement of the permanent improvements, the financing of the permanent
improvements, and the placing of the permanent improvements in condition for
use and operation, and all like or related costs, including any one, part, or
combination of, or the taxing authority's share of, those costs and expenses.

The total of the principal of and interest on all securities
issued by the taxing authority of a district under this section and outstanding
at any time shall not exceed such an amount that the debt charges on the
outstanding securities due in any fiscal year exceed three per cent of the
operating expenses of the district for that year.

(B)
Self-supporting securities issued under
this section are not general obligations of the district or of the counties
composing the district. Self-supporting securities issued under this section
shall be secured by a pledge of and a lien on the payments due from counties
under the agreement entered into under division (C) of section
2151.655 of the Revised Code or
the revenue, if any, of the district derived from ownership or operation of the
district's permanent improvements, including rates, charges, or rents. If any
such rates, charges, or rents are levied, the securities shall further be
secured by covenants of the taxing authority to maintain sufficient rates,
charges, or rents to pay debt charges on the securities to the extent those
debt charges are not payable from other funds of the district or to the extent
other funds of the district are not pledged to the payment of the debt charges.
If any securities are issued to fund or refund any self-supporting securities
issued under this section, the self-supporting securities shall be secured by a
pledge of and lien on the proceeds of such funding or refunding securities.

(C)
A joint board of county
commissioners issuing self-supporting securities under this section shall do so
by resolution, and such resolution shall set forth the terms of the securities,
the date of the securities, the amount to be issued, and the maximum rate of
interest. The securities shall mature at such times not exceeding the maximum
limits specified for general obligations in section
133.20 of the Revised Code, and
shall be executed in such manner as the resolution provides. The securities
shall be negotiable, bear interest at such rate or rates, be in such
denominations, be in such form, carry such registration privileges, be payable
in such medium of payment at such place or places, and be subject to such terms
of redemption as the taxing authority may authorize. The securities may be sold
at public or private sale.

(D)
Self-supporting securities issued under this section, their transfer, and any
income therefrom, including any profit made on the sale thereof, shall at all
times be free from taxation within the state.

(A)
Capitalized
interest may be included in the principal amount of Chapter 133. securities to
pay the interest that the fiscal officer or taxing authority estimates will
become due and payable on the securities prior to the receipt of sufficient
taxes, special assessments, or other revenues or receipts from which the
interest is generally to be paid. Capitalized interest shall be deposited, as
determined by the taxing authority or the fiscal officer, in the bond
retirement fund or in a separate account in the special improvement or
construction fund, and applied to interest on those securities. The amount of
capitalized interest may not exceed an amount estimated by the fiscal officer
to be twenty-four months' interest on the securities, except:

(1)
In the case of securities issued in
anticipation of the levy or of the collection of special assessments, the
amount of capitalized interest may not exceed the greater of twenty-four
months' interest on the securities or the interest that the fiscal officer or
taxing authority estimates will become due and payable on those securities
prior to the receipt by the subdivision of the first installment of those
special assessments.

(2)
In the
case of securities issued for or relating to the purpose of permanent
improvements described in division (B)(1) of section
133.05 , in division (C) of section
133.07 , or in section
133.08 of the Revised Code, the
amount of capitalized interest may not exceed the interest that the fiscal
officer or the taxing authority estimates will become due and payable on those
securities during the period of construction of the permanent improvement plus
one year or during three years, whichever is longer.

(B)
Whenever any part of the principal amount
of an issue of Chapter 133. securities deposited in a special improvement or
construction fund, other than an amount for capitalized interest, is used for
the payment of interest on the securities, the amount so used, which amount,
together with any amount of any capitalized interest, may not exceed the amount
of capitalized interest permitted under division (A) of this section, at the
direction of the taxing authority or the fiscal officer may be repaid into that
special fund from moneys available for the purpose, including the proceeds of
any taxes or special assessments otherwise levied and collected to pay the debt
charges on the securities, and the taxing authority may levy and collect those
taxes or special assessments for that purpose.

(C)
The amount of capitalized interest
authorized by this section to be included in the principal amount of an issue
of Chapter 133. securities shall be reduced by the amount of any capitalized
interest included in any prior issue of securities, whether anticipatory
securities or otherwise, that is to be or was retired by the issuance of the
securities or prior securities.

(A)
The taxing authority of a subdivision may
issue securities in anticipation of the collection of unpaid special
assessments in an amount sufficient to pay that portion of the cost of the
permanent improvement or service for which the special assessments have been
levied. Proceeds of the annual collections of the special assessments shall be
applied first to pay the debt charges on the securities payable from those
special assessments and then, after the payment in full of those debt charges,
to pay any other permitted costs.

(B)
The taxing authority of a subdivision may
issue anticipatory securities in anticipation of the levy of special
assessments and of the issuance of securities under division (A) of this
section. The anticipatory securities shall mature not later than the last day
of December of the fifth year following the year in which the first such
anticipatory securities are issued, except that the anticipatory securities may
be renewed thereafter from time to time until the final disposition of any
litigation that prevents or delays the delivery of the securities to be issued
under division (A) of this section. The principal amount of those anticipatory
securities issued shall not exceed that portion of the estimated cost of the
permanent improvement for which the special assessments are to be levied. When
anticipatory securities are issued, the proceeds of any securities thereafter
issued in anticipation of the levy or of the collection of the same special
assessments and all of the special assessments collected for the purpose shall
be applied first to the extent necessary to the payment of the debt charges on
the anticipatory securities. After the debt charges on the anticipatory
securities have been paid or provided for in full, all of the special
assessments shall be applied first to the payment of the debt charges on
subsequent outstanding securities.

(C)
In addition to authority for combination
in other provisions of this chapter, securities authorized to be issued under
either division (A) or (B) of this section may be combined for all purposes of
this chapter in a single issue composed of securities issued under the
applicable division (A) or (B) of this section and of securities to pay the
subdivision's share of the cost of the permanent improvements for which the
special assessment securities are issued, which combined issue shall be
considered to be for one purpose.

(D)
Securities issued under this section in
anticipation of the levy or of the collection of special assessments are
general obligations of the issuing subdivision.

(A)
The
taxing authority of a subdivision may by legislation submit to the electors of
the subdivision the question of issuing any general obligation bonds, for one
purpose, that the subdivision has power or authority to issue.

(B)
When the taxing authority of a subdivision desires or is required by law to
submit the question of a bond issue to the electors, it shall pass legislation
that does all of the following:

(2)
States the date of the authorized election at which the question shall be
submitted to the electors;

(3)
States the amount, approximate date, estimated net average rate of interest,
and maximum number of years over which the principal of the bonds may be
paid;

(4)
Declares
the necessity of levying a tax outside the tax limitation to pay the debt
charges on the bonds and any anticipatory securities.

The estimated net
average interest rate shall be determined by the taxing authority based on,
among other factors, then existing market conditions, and may reflect
adjustments for any anticipated direct payments expected to be received by the
taxing authority from the government of the United States relating to the bonds
and the effect of any federal tax credits anticipated to be available to owners
of all or a portion of the bonds. The estimated net average rate of interest,
and any statutory or charter limit on interest rates that may then be in effect
and that is subsequently amended, shall not be a limitation on the actual
interest rate or rates on the securities when issued.

(1)
The taxing authority shall certify a copy
of the legislation passed under division (B) of this section to the county
auditor. The county auditor shall promptly calculate and advise and, not later
than ninety days before the election, confirm that advice by certification to,
the taxing authority the estimated average annual property tax levy, expressed
in cents or dollars and cents for each one hundred dollars of tax valuation and
in mills for each one dollar of tax valuation, that the county auditor
estimates to be required throughout the stated maturity of the bonds to pay the
debt charges on the bonds. In calculating the estimated average annual property
tax levy for this purpose, the county auditor shall assume that the bonds are
issued in one series bearing interest and maturing in substantially equal
principal amounts in each year over the maximum number of years over which the
principal of the bonds may be paid as stated in that legislation, and that the
amount of the tax valuation of the subdivision for the current year remains the
same throughout the maturity of the bonds, except as otherwise provided in
division (C)(2) of this section. If the tax valuation for the current year is
not determined, the county auditor shall base the calculation on the estimated
amount of the tax valuation submitted by the county auditor to the county
budget commission. If the subdivision is located in more than one county, the
county auditor shall obtain the assistance of the county auditors of the other
counties, and those county auditors shall provide assistance, in establishing
the tax valuation of the subdivision for purposes of certifying the estimated
average annual property tax levy.

(2)
When considering the tangible personal property component of the tax valuation
of the subdivision, the county auditor shall take into account the assessment
percentages prescribed in section
5711.22 of the Revised Code. The
tax commissioner may issue rules, orders, or instructions directing how the
assessment percentages must be utilized.

(D)
After receiving the county auditor's advice under division (C) of this section,
the taxing authority by legislation may determine to proceed with submitting
the question of the issue of securities, and shall, not later than the
ninetieth day before the day of the election, file the following with the board
of elections:

(1)
Copies
of the legislation provided for in divisions (B) and (D) of this
section;

(2)
The
amount of the estimated average annual property tax levy, expressed in cents or
dollars and cents for each one hundred dollars of tax valuation and in mills
for each one dollar of tax valuation, as estimated and certified to the taxing
authority by the county auditor.

(1)
The board of elections shall prepare the
ballots and make other necessary arrangements for the submission of the
question to the electors of the subdivision. If the subdivision is located in
more than one county, the board shall inform the boards of elections of the
other counties of the filings with it, and those other boards shall if
appropriate make the other necessary arrangements for the election in their
counties. The election shall be conducted, canvassed, and certified in the
manner provided in Title XXXV of the Revised Code.

(2)
The election shall be held at the regular places for voting in the subdivision.
If the electors of only a part of a precinct are qualified to vote at the
election the board of elections may assign the electors in that part to an
adjoining precinct, including an adjoining precinct in another county if the
board of elections of the other county consents to and approves the assignment.
Each elector so assigned shall be notified of that fact prior to the election
by notice mailed by the board of elections, in such manner as it determines,
prior to the election.

(3)
The board of elections shall publish a notice of the election once in
a newspaper of general circulation in the
subdivision, no later than
ten days prior to the election. The notice shall state all of the following:

(c)
The maximum number of years over which the principal of the bonds may be
paid;

(d)
The
estimated additional average annual property tax levy, expressed in cents or
dollars and cents for each one hundred dollars of tax valuation and in mills
for each one dollar of tax valuation, to be levied outside the tax limitation,
as estimated and certified to the taxing authority by the county
auditor;

(1)
The form of the ballot to be used at the
election shall be substantially either of the following, as applicable:

(a)
"Shall bonds be issued by the ............ (name of subdivision) for the
purpose of ........... (purpose of the bond issue) in the principal amount of
.......... (principal amount of the bond issue), to be repaid annually over a
maximum period of .......... (the maximum number of years over which the
principal of the bonds may be paid) years, and an annual levy of property taxes
be made outside the .......... (as applicable, "ten-mill" or "...charter tax")
limitation, estimated by the county auditor to average over the repayment
period of the bond issue .......... (number of mills) mills for each one dollar
of tax valuation, which amounts to .......... (rate expressed in cents or
dollars and cents, such as "36 cents" or "$1.41") for each one hundred dollars
of tax valuation, commencing in .......... (first year the tax will be levied),
first due in calendar year .......... (first calendar year in which the tax
shall be due), to pay the annual debt charges on the bonds, and to pay debt
charges on any notes issued in anticipation of those bonds?

For the bond
issue

Against the
bond issue

"

(b)
In the case of an election held pursuant to legislation adopted under section
3375.43 or
3375.431 of the Revised Code:

"Shall bonds be
issued for .......... (name of library) for the purpose of .......... (purpose
of the bond issue), in the principal amount of .......... (amount of the bond
issue) by .......... (the name of the subdivision that is to issue the bonds
and levy the tax) as the issuer of the bonds, to be repaid annually over a
maximum period of .......... (the maximum number of years over which the
principal of the bonds may be paid) years, and an annual levy of property taxes
be made outside the ten-mill limitation, estimated by the county auditor to
average over the repayment period of the bond issue .......... (number of
mills) mills for each one dollar of tax valuation, which amounts to ..........
(rate expressed in cents or dollars and cents, such as "36 cents" or "$1.41")
for each one hundred dollars of tax valuation, commencing in .......... (first
year the tax will be levied), first due in calendar year .......... (first
calendar year in which the tax shall be due), to pay the annual debt charges on
the bonds, and to pay debt charges on any notes issued in anticipation of those
bonds?

For the bond
issue

Against the
bond issue

"

(2)
The purpose for which the bonds are to be issued shall be printed in the space
indicated, in boldface type.

(G)
The board of elections shall promptly certify the results of the election to
the tax commissioner, the county auditor of each county in which any part of
the subdivision is located, and the fiscal officer of the subdivision. The
election, including the proceedings for and result of the election, is
incontestable other than in a contest filed under section
3515.09 of the Revised Code in
which the plaintiff prevails.

(H)
If a majority of the electors voting upon the question vote for it, the taxing
authority of the subdivision may proceed under sections
133.21 to
133.33 of the Revised Code with the
issuance of the securities and with the levy and collection of a property tax
outside the tax limitation during the period the securities are outstanding
sufficient in amount to pay the debt charges on the securities, including debt
charges on any anticipatory securities required to be paid from that tax. If
legislation passed under section
133.22 or
133.23 of the Revised Code
authorizing those securities is filed with the county auditor on or before the
last day of November, the amount of the voted property tax levy required to pay
debt charges or estimated debt charges on the securities payable in the
following year shall if requested by the taxing authority be included in the
taxes levied for collection in the following year under section
319.30 of the Revised
Code.

(1)
If, before any securities authorized at
an election under this section are issued, the net indebtedness of the
subdivision exceeds that applicable to that subdivision or those securities,
then and so long as that is the case none of the securities may be
issued.

(2)
No
securities authorized at an election under this section may be initially issued
after the first day of the sixth January following the election, but this
period of limitation shall not run for any time during which any part of the
permanent improvement for which the securities have been authorized, or the
issuing or validity of any part of the securities issued or to be issued, or
the related proceedings, is involved or questioned before a court or a
commission or other tribunal, administrative agency, or board.

(3)
Securities representing a portion of the amount authorized at an election that
are issued within the applicable limitation on net indebtedness are valid and
in no manner affected by the fact that the balance of the securities authorized
cannot be issued by reason of the net indebtedness limitation or lapse of
time.

(4)
Nothing
in this division (I) shall be interpreted or applied to prevent the issuance of
securities in an amount to fund or refund anticipatory securities lawfully
issued.

(5)
The
limitations of divisions (I)(1) and (2) of this section do not apply to any
securities authorized at an election under this section if at least ten per
cent of the principal amount of the securities, including anticipatory
securities, authorized has theretofore been issued, or if the securities are to
be issued for the purpose of participating in any federally or state-assisted
program.

(6)
The
certificate of the fiscal officer of the subdivision is conclusive proof of the
facts referred to in this division.

(A)
Before the
taxing authority passes the initial legislation under section
133.22 or
133.23 of the Revised Code
providing for the issuance of Chapter 133. securities for purposes of permanent
improvements, and any subsequent legislation for the purpose if the
certification is changed, the fiscal officer of the subdivision shall certify
to the taxing authority the estimate of the maximum maturity of the bonds, and,
if applicable, of anticipatory securities, calculated in accordance with
section 133.20 and division (C) of section
133.22 of the Revised Code, and
that all the permanent improvements have an estimated life or period of
usefulness of at least five years.

(1)
With maximum maturities
extending beyond the maturities as thus certified by the fiscal officer, whose
estimate and certification is conclusive;

(2)
In the case of bonds approved at an
election under section
133.18 of the Revised Code, bonds
with a latest maturity exceeding the maximum number of years over which
principal of the bonds may be paid as approved at that election;

(3)
In the case of acquisition of property by
lease or of permanent improvements to leased property, with maximum maturities
extending beyond the term of the lease or the estimated life or period of
usefulness of the permanent improvement being financed, whichever is shorter.

(C)
If the proposed
securities are subject to division (D) of section
133.20 of the Revised Code, the
fiscal officer's certification shall also contain a schedule of the respective
amounts of proceeds of the proposed securities that are to be used for
permanent improvements included under categories set forth in either or both of
divisions (B) and (C) of that section. The amount expended from the proceeds of
the securities for any permanent improvements falling within any such category
shall not exceed the amount allotted in the schedule to permanent improvements
falling within that category. The taxing authority may, whenever it considers
it to be necessary for carrying out the purpose of the securities issue, expend
any unexpended portion of the amount previously allotted to any permanent
improvements within any of those categories for any permanent improvements
having a longer maturity under those categories. No expenditure may be made of
amounts allotted to permanent improvements within any category for permanent
improvements within another category having a shorter maturity.

(A)
This section applies to bonds that are general obligation Chapter 133.
securities. If the bonds are payable as to principal by provision for annual
installments, the period of limitations on their last maturity, referred to as
their maximum maturity, shall be measured from a date twelve months prior to
the first date on which provision for payment of principal is made. If the
bonds are payable as to principal by provision for semiannual installments, the
period of limitations on their last maturity shall be measured from a date six
months prior to the first date on which provision for payment of principal is
made.

(B)
Bonds
issued for the following permanent improvements or for permanent improvements
for the following purposes shall have maximum maturities not exceeding the
number of years stated:

(a)
The
clearance and preparation of real property for redevelopment as an urban
redevelopment project;

(b)
Acquiring, constructing, widening, relocating, enlarging, extending, and
improving a publicly owned railroad or line of railway or a light or heavy rail
rapid transit system, including related bridges, overpasses, underpasses, and
tunnels, but not including rolling stock or equipment;

(c)
Pursuant to section
307.675 of the Revised Code,
constructing or repairing a bridge using long life expectancy material for the
bridge deck, and purchasing, installing, and maintaining any performance
equipment to monitor the physical condition of a bridge so constructed or
repaired. Additionally, the average maturity of the bonds shall not exceed the
expected useful life of the bridge deck as determined by the county engineer
under that section.

(g)
Energy conservation measures as authorized by section
505.264 of the Revised
Code.

(8)
Five
years: New motor vehicles other than those described in any other division of
this section and those for which provision is made in other provisions of the
Revised Code.

(C)
Bonds issued for any permanent improvements not within the categories set forth
in division (B) of this section shall have maximum maturities of from five to
thirty years as the fiscal officer estimates is the estimated life or period of
usefulness of those permanent improvements. Bonds issued under section
133.51 of the Revised Code for
purposes other than permanent improvements shall have the maturities, not to
exceed forty years, that the taxing authority shall specify. Bonds issued for
energy conservation measures under section
307.041 of the Revised Code shall
have maximum maturities not exceeding the lesser of the average life of the
energy conservation measures as detailed in the energy conservation report
prepared under that section or thirty years.

(D)
Securities issued under section
505.265 of the Revised Code shall
mature not later than December 31, 2035.

(E)
A securities issue for one purpose may include permanent improvements within
two or more categories under divisions (B) and (C) of this section. The maximum
maturity of such a bond issue shall not exceed the average number of years of
life or period of usefulness of the permanent improvements as measured by the
weighted average of the amounts expended or proposed to be expended for the
categories of permanent improvements.

(F)
Securities issued by a school district or county
to acquire or construct real property shall have a maximum maturity longer than
thirty years, but not longer than forty years, if the
fiscal officer
of the school district or county estimates the
real property's useful life to be longer than thirty years, and certifies that
estimate to the board of education or board of county
commissioners, respectively.

(A)
Except
as provided in divisions (B) and (C) of this section, the principal amount of
securities issued by any subdivision shall be payable in semiannual or annual
installments, as serial securities or by mandatory sinking fund or mandatory
sinking fund redemption requirements, in:

(c)
In the case of self-supporting securities, those payments on the securities and
on other securities, except anticipatory securities, issued for the
self-supporting purpose, substantially equal.

(B)
Except for refunding securities issued pursuant to section
133.34 of the Revised Code, and
except for securities issued to fund or refund anticipatory securities to the
extent required to comply with division (C)(2) or (3) of section
133.22 of the Revised Code, the
first principal payment of securities issued with semiannual payments shall not
be later than the first day of the second February following the fifteenth day
of July next following the passage of the legislation that authorized the issue
of the securities and of securities issued with annual payments shall not be
later than the first day of the third August next following the fifteenth day
of July next following such passage.

(C)
Divisions (A) and (B) of this section do not apply to any of the following:

(3)
General obligation securities issued for the purpose of the acquisition of real
property and the clearance and preparation thereof for redevelopment as an
urban development project, which may mature or be payable in annual or
semiannual installments and in such amounts as may be determined by the taxing
authority of the municipal corporation issuing the securities, and which may
have a first principal payment date set at any date not later than sixty months
from the date the securities are issued.

(D)
For purposes of this section, payments of principal, in the case of principal
payable in accordance with mandatory sinking fund or mandatory sinking fund
redemption requirements, means the sinking fund deposits on account of
principal; and, in the case of securities issued in
multiple installments or series for the same purpose, the principal payment
requirement of division (A) of this section may be met either with respect to
each installment or series of the securities or with respect to all
installments or series on a consolidated basis.

(A)
The taxing authority of a subdivision
having legal authority and desiring to issue anticipatory securities that are
Chapter 133. securities may pass legislation, and if anticipatory securities
are outstanding and are to be paid in whole or in part at their maturity from
the proceeds of renewal anticipatory securities, the taxing authority shall
pass legislation that does all of the following:

(a)
Declares the necessity of the bond issue
and states its purpose, which shall be for one purpose, and the principal
amount or maximum principal amount of the bonds and an estimated principal
payment schedule for and an estimated or maximum average annual interest rate
on the bonds;

(b)
If the issuance
of the bonds has been approved by a vote of the electors, identifies the
election at which approved;

(c)
Identifies the source or sources of payment of debt charges on the bonds as
provided in division (C) of section
133.23 of the Revised Code.

(a)
States the
principal amount or maximum principal amount of the anticipatory securities to
be issued and outstanding, not to exceed the amount of the bond issue;

(b)
Provides for, or provides for
the method for from time to time establishing or determining, the rate or rates
of interest or the maximum rate or rates of interest to be paid on the
anticipatory securities, the date or dates of the anticipatory securities, and
the maturity or maturities or the maximum maturity of the anticipatory
securities subject to division (C) of this section;

(c)
Establishes provisions, if any, for
redemption or prepayment of the anticipatory securities in whole or in part
before maturity;

(d)
If the bonds
anticipated are payable from a property tax, provides for the levy of a
property tax during the years the anticipatory securities are outstanding, not
less than the tax that would have been levied if the bonds anticipated had been
issued without the prior issuance of the anticipatory securities.

(B)
The fiscal officer
of the subdivision shall file a copy of the legislation passed under division
(A) of this section with the county auditor of each county in which any part of
the subdivision is located.

(C)
Subject to division (B) of section
133.17 of the Revised Code as to
anticipatory securities anticipating the levy of special assessments or the
issuance of securities under division (A) of that section, any anticipatory
securities issued with a latest maturity of less than two hundred forty months
may be renewed from time to time until the expiration of two hundred forty
months from the date of issuance of the original anticipatory securities, or,
if later, until the final disposition of any litigation that prevents the sale
or issuance of the bonds anticipated. If any of the anticipatory securities are
outstanding later than the last day of December of the fifth year following the
year of issuance of the original anticipatory securities, the following apply:

(1)
There shall be deducted from the latest
permitted maturity of the bonds anticipated, as determined under sections
133.19 and
133.20 of the Revised Code, the
period in excess of those five years during which the anticipatory securities
are outstanding.

(2)
After the
five-year period, a portion of the principal of the anticipatory securities
shall be paid in each year in annual amounts at least equal to, and payable not
later than the payment dates of, the amounts of principal that would have been
paid if bonds payable, as determined by the taxing authority in the legislation
passed pursuant to division (A) of this section, as provided in division (A)(1)
or (2) of section
133.21 of the Revised Code, had
been issued at the expiration of the initial five-year period.

(3)
The latest maturity of anticipatory
securities may not in any case exceed the maximum maturity of the bonds
anticipated plus five years. Anticipatory securities issued with a maturity or
latest maturity meeting the maximum maturity limitation of the preceding
sentence shall not be issued as anticipatory securities in anticipation of
bonds but shall be payable and paid from other sources.

(1)
Notwithstanding any other provision of this chapter, but subject to the
provisions of this division (D), sections
9.98 to
9.983 of the
Revised Code apply to anticipatory securities issued under this section to the
extent made applicable by the taxing authority in its legislation.

(2)
Terms used in this division that are
defined in section
9.98 of the
Revised Code have the meanings stated in that section.

(3)
The taxing authority shall in the
proceedings set one or more maximum rates of interest for the anticipatory
securities.

(4)
The taxing
authority may reserve the right to replace any remarketing agent and indexing
agent at any time after notice of replacement is given and, as to anticipatory
securities with a floating rate interest structure or put arrangement,
effective at the end of an interest rate period or after a designated put date,
upon determination by the taxing authority or by an officer of the subdivision
as provided for in the proceedings.

(5)
Changes in interest rate, interest rate
period, or put dates shall be authorized by the taxing authority or by an
officer of the subdivision as provided for in the proceedings.

(6)
Proceedings for anticipatory securities
having a put arrangement may provide for redemption, with or without premium,
at the option of the subdivision at any time, and shall provide for optional
redemption as of any put date that is at least six months subsequent to the
last previous put date as of which optional redemption could have been
exercised by the subdivision.

(7)
Proceedings for commercial paper, subject to the limitations set forth in those
proceedings, may authorize successive issues of commercial paper in such
amounts and with such interest rates and maturity dates as are approved from
time to time by an officer of the subdivision and in the manner as provided for
in the proceedings, which approvals may be by oral communication prior to
delivery of an issue of commercial paper and subsequently confirmed in writing.

(8)
Proceedings for anticipatory
securities with a floating rate interest structure and for commercial paper
shall set forth the estimated interest rate, based upon then current financial
market conditions, that would be borne by the bonds anticipated by the
anticipatory securities if these bonds were sold at the time of original
authorization of those anticipatory securities. That estimated interest rate
shall be confirmed or reestimated in each measure making the annual
appropriations of the subdivision unless it has been confirmed or redetermined
for that fiscal year prior to the adoption of the annual appropriation measure.

(9)
The maximum interest rates set
under division (D)(3) of this section shall not exceed the estimated average
annual interest rate on the bonds anticipated by the anticipatory securities,
unless:

(a)
Pursuant to the proceedings for
those anticipatory securities and in the annual appropriation measures of the
subdivision, if necessary, provision is made whereby payment of the additional
interest under any such higher maximum interest rate in excess of the estimated
average annual interest rate on the bonds or in excess of the maximum interest
rate payable by a person under an interest rate swap arrangement referred to in
division (D)(9)(b) of this section, if higher, will be provided for adequately
without necessity for the levy of any property tax for the purpose, by:

(ii)
Amounts temporarily set
aside in the bond retirement fund from moneys in the bond retirement fund not
required by law or contract to be used to pay debt charges on any other
securities and in excess of other requirements of the bond retirement fund for
the current fiscal year, or temporarily advanced for the purpose from any
special fund of the subdivision to which the purpose of the anticipatory
securities relates, or from the general fund of the subdivision; or

(b)
There is currently
in effect an interest rate swap arrangement between the subdivision and another
person, the obligations of which person are rated in one of the two highest
rating categories of a national rating agency, pursuant to which interest rate
swap arrangement such other person has undertaken to pay interest on the
anticipatory securities in excess of such effective interest rate on the bonds.

(10)
Provision shall be
made in the tax budgets and annual appropriation measures of the subdivision
for the amounts and from sources referred to in division (D)(9)(a)(ii) of this
section and no tax levy shall be provided for such amounts. Amounts so provided
pursuant to division (D)(9)(a)(ii) of this section shall lapse as of the last
day of each fiscal year following the fiscal year of the original issuance of
the anticipatory securities, and be returned to the fund or account from which
they were provided. In the event of failure of the taxing authority to make the
appropriation necessary to meet the provision of division (D)(9)(a)(ii) of this
section, the anticipatory securities shall be redeemed on or before the last
day of the second calendar month of the fiscal year for which the annual
appropriations measure adopted fails to make such provisions and in such
circumstances the anticipatory securities shall be subject to redemption, at
not to exceed their par value.

(E)
Renewal anticipatory securities or bonds
to pay debt charges on anticipatory securities issued pursuant to this section
or section 133.17 or
133.23 of the Revised Code may be
issued at an interest rate or rates determined or authorized by the taxing
authority, notwithstanding any statutory or charter limitation on interest
rates payable on any securities.

(A)
If the taxing
authority has not determined to issue anticipatory securities in anticipation
of bonds under section
133.22 of the Revised Code the
taxing authority may, and if the taxing authority has issued such anticipatory
securities and they are to be paid in whole or in part at their maturity from
the proceeds of bonds the taxing authority shall, pass legislation that:

(1)
Declares the necessity of the bond issue,
and determines whether the bonds are to be issued in one lot or in
installments;

(2)
States the
principal amount or maximum principal amount of the bonds to be issued;

(3)
States the purpose of the bond
issue, which shall be for one purpose, except as otherwise authorized in
division (B) of section
133.30 of the Revised Code;

(4)
States or provides for the
date of, and the dates and amounts or maximum amounts of maturities or
principal payments on, the bonds, which need not be the same as those stated in
any prior legislation;

(5)
States
any provisions for a mandatory sinking fund or mandatory sinking fund
redemption or for redemption prior to maturity;

(6)
Provides for the rate or rates of
interest or maximum rate or rates of interest or, if otherwise authorized, the
method for from time to time establishing or determining the rate or rates of
interest, to be paid on the bonds;

(7)
If the issuance of the bonds has been
approved by a vote of the electors, identifies the election at which approved;
and

(8)
States any provision for a
designated officer of the subdivision to determine any of the specific terms
required to be stated or provided for in divisions (A)(4) to (6) of this
section, subject to any limitations stated in the legislation.

(B)
If the taxing authority
determines to issue bonds in installments, it shall pass similar legislation
whenever a new installment of those bonds is to be issued.

(C)
Legislation passed under this section
shall identify the source or sources of payment of debt charges on the bonds,
which may be any moneys of the subdivision required by law to be used, or
lawfully available, for the purpose. If the bonds are general obligations of
the subdivision or a property tax is otherwise required to be levied for the
purpose, the legislation shall provide for the levying of a property tax
sufficient in amount to pay the debt charges on the bonds issued under the
legislation, but the amount of that tax to be levied or collected in any year
may be reduced by the amount to be available for the purpose from lawfully
available special assessments, revenues and surplus funds of public utilities,
any surplus in the funds from which such bonds are to be retired, or other
moneys specifically assigned by law or by legislation of the taxing authority
for payment of such debt charges.

(D)
The fiscal officer of the subdivision
shall file a copy of the legislation with the county auditor of each county in
which any part of the subdivision is located.

(A)
This
section applies to tax anticipation notes authorized by the law applying to the
particular levy and issued in anticipation of the collection of the proceeds of
a voted property tax levy. Those notes are Chapter 133. securities.

(B)
After approval of the levy by the
electors, the taxing authority may anticipate that portion of the proceeds of
the levy and issue tax anticipation notes, either from time to time during the
life of the levy or prior to the time when the first collection and
distribution from the levy can be made, as provided in the law applying to that
levy. The aggregate outstanding principal amount of tax anticipation notes may
not exceed the amount of the levy proceeds that may be anticipated, as provided
in that applicable law by a statement of percentage or by a limitation on the
amount of annual maturities. Tax anticipation notes shall mature no later than
the last day of December of the last year authorized by the applicable law or
of the last year of collection of the anticipated tax levy, whichever is
earlier.

(C)
As a supplemental
procedure to, and unless and to the extent expressly prohibited in, the law
applying to the particular levy, tax anticipation notes may be authorized,
issued, and sold at public or private sale, may mature or be payable, and the
proceeds shall be deposited and applied, as provided in division (A)(1) or
(2)(b) of section
133.21 , division (A) of section
133.22 to the extent applicable,
section 133.27 , divisions (A) and (C) of
section 133.30 , and sections
133.31 and
133.33 of the Revised Code. The
proceeds of the notes, if authorized in the legislation, may be applied to pay
related financing costs.

(D)
Except for capitalized interest, debt charges on tax anticipation notes shall
be payable only from the proceeds of the tax levy anticipated. The amount
necessary to pay debt charges on the notes in a particular year or fiscal year
shall be deemed appropriated for that purpose from the proceeds in that year of
the levy anticipated, and appropriations from the proceeds of that levy by the
subdivision in each fiscal year shall be limited to the balance available after
deducting the amount to be applied to pay those debt charges. The amount to be
applied to those debt charges shall be deposited, to an account for the purpose
in the bond retirement fund, from collections and distributions of the tax levy
to the taxing authority, in the amounts and at the times required to pay those
debt charges as provided in the legislation authorizing the tax anticipation
notes. Any amount so deposited and not needed for the purpose in the particular
fiscal year may, without compliance with any other law or approval by any other
agency, be transferred to the special fund established for the proceeds of the
tax levy.

(A)
After the issuance of general obligation securities or of securities to which
section 133.24 of the Revised Code applies,
the taxing authority of the subdivision shall include in its annual tax budget,
and levy a property tax in a sufficient amount, with any other moneys available
for the purpose, to pay the debt charges on the securities payable from
property taxes. The necessary property tax rate shall be included in the fiscal
year tax budget that is certified by the subdivision to the county budget
commission, and, if within the ten-mill limitation, shall be without diminution
by reason of section
5705.313 of the Revised Code or
any similar provisions.

(B)
If the
taxing authority determines it to be necessary or appropriate, and if not
prohibited by other law, legislation relating to Chapter 133. securities may,
or that legislation may provide for proceedings that may, contain or provide
for any one or more or combination of the following:

(1)
The pledge to the payment of debt charges
of, and related covenants to levy, charge, collect, deposit, and apply,
receipts of the subdivision lawfully available for the purpose, referred to in
this division (B) as pledged receipts, including, without limitation, ad
valorem property taxes as permitted by law, income taxes, excises, utility and
service revenues, local government fund, school foundation, and moneys
described in Section 5a of Article XII, Ohio Constitution, and any other
receipts from taxes, excises, permits, licenses, fines, or other sources of
revenue of or of revenue distributions to the subdivision, and covenants for
the establishment, investment, segregation, and maintenance of any funds or
reserves in connection with the securities. No pledge or covenant may be made
that impairs the express contract rights of the holders of outstanding
securities of the subdivision.

(2)
Designation of a bank or trust company authorized to exercise corporate trust
powers in this state as a fiscal agent for the securities, which fiscal agent
may be a purchaser of any securities and fiscal agent for any other securities
of the subdivision, and provision for the periodic deposit of pledged receipts
in one or more separate bank accounts, funds, or other accounts established
with the fiscal agent, including provision for pledged receipts collected or
paid by the state or another subdivision to be transferred, by the appropriate
officer of the state or other subdivision having charge of the distribution of
the pledged receipts to the subdivision, directly to the fiscal agent for such
deposit, which officers shall transfer such pledged receipts in accordance with
this division and the legislation. The fiscal agent shall disburse moneys so
held in accordance with the legislation, including the transfer of moneys to
paying agents or to persons providing credit enhancement facilities at the
times and in the amounts required. Until needed for that purpose, and subject
to any limitations in the legislation, the fiscal agent shall either deposit
such moneys on behalf of the subdivision in an institution that is eligible to
become a public depository pursuant to section
135.03 of the Revised Code or
invest the moneys on behalf of the subdivision in obligations that are under
applicable law lawful for the investment of the particular moneys. Divisions
(D), (E), and (G) of section
135.04 and sections
135.08 and
135.09 of the Revised Code do not
apply to any such deposits or investments. Amounts so held and received by a
fiscal agent shall be accounted for in the appropriate special funds of the
subdivision as if held in the treasury of the subdivision, and the fiscal agent
shall provide such information to the subdivision and to the auditor of state
as is necessary for the purpose.

(3)
Covenants of the subdivision and other
provisions to protect and safeguard the security and rights of the holders of
the securities and of the providers of any credit enhancement facilities and
provisions for defeasance, including, without limiting the generality of the
foregoing, such covenants and provisions as to:

(a)
Establishment and maintenance of the
funds to be held by a fiscal agent as provided in this division, the times,
amounts, and levels for deposit to such funds, and the obligations in which the
proceeds of such funds may be invested pending their use, subject to
limitations on investment of public funds otherwise provided for by law or
charter or by the legislation;

(b)
The appointment, rights, powers, and duties of the fiscal agent, and vesting in
the fiscal agent all or any of those rights, powers, and duties in trust;

(c)
Compliance with the provisions
of this chapter and other laws applicable to the payment of debt charges on
securities of the subdivision, including Chapter 5705. of the Revised Code;

(d)
Conditions that would give
rise to an event of default under the terms of the legislation, and actions and
remedies that any fiscal agent may take or assert on behalf of the holders of
the securities.

(4)
As
rights and remedies of the holders of securities, in addition to any other
rights and remedies under law, but subject to the terms of the legislation and
of any credit enhancement facility, provision that if the subdivision defaults
in the payment of debt charges on the securities and such default continues for
a period of thirty days, or if the subdivision fails or refuses to comply with
the requirements of this chapter or the applicable proceedings, or defaults in
any contract made with the holders of those securities, the holders of not less
than twenty-five per cent in principal amount of the outstanding securities of
that issue may appoint a trustee, who may be the fiscal agent, to represent
those holders for the purposes provided in this division (B)(4). That trustee
may, and upon written request of the holders of not less than twenty-five per
cent in principal amount of those securities then outstanding shall, in its own
name exercise all or any of the powers of such holders under division (B)(3) of
this section and in addition may:

(a)
Bring
action for payment of any debt charges then due on the securities;

(b)
By mandamus or other action or proceeding
enforce all rights of the holders of the securities, including any right to
require the subdivision to assess, levy, charge, collect, and apply pledged
receipts adequate to carry out the provisions of the legislation and any
agreement with those holders and to perform its duties under the legislation
and this chapter;

(d)
By
action, require the subdivision to account as if it were the trustee of an
express trust for the holders of the securities;

(e)
By action, enjoin any acts or things that
may be unlawful or in violation of the rights of the holders of those
securities;

(f)
Except in the case
of securities payable from a property tax, declare all securities of the issue
due and payable, and if all defaults are subsequently corrected, then, with the
consent of the holders of not less than ten per cent in principal amount of
those securities then outstanding, rescind and annul that declaration and its
consequences.

In addition to the foregoing, the trustee shall have all of the
powers necessary or appropriate for the exercise of any functions specifically
set forth in this section or the legislation or incident to the general
representation of the holders of those securities in the enforcement and
protection of their rights.

(5)
Contracts or other arrangements for
credit enhancement facilities, which may be with a fiscal agent. The costs of
or under credit enhancement facilities may be paid from any moneys of the
subdivision lawfully available for the purpose. The credit enhancement facility
may be for the benefit of holders of the particular securities and of any other
securities of the subdivision. Any such benefit conferred with respect to other
securities shall not be deemed to restrict, preclude, or otherwise impair any
rights that those holders otherwise may assert.

(C)
Unless otherwise provided in the
proceedings, the holders of not less than ten per cent in principal amount of
the particular securities at the time outstanding, whether or not then due and
payable or reduced to judgment and either on their own behalf or on behalf of
all persons similarly situated, may:

(1)
By
mandamus, mandatory or other injunction, or any other order, writ, process, or
decree, or by any other action or proceeding, enforce all contractual or other
rights of such holders, including any right to require the subdivision to
assess, levy, charge, collect, and apply the pledged receipts pledged to carry
out the provisions of any agreement with such holders and perform its duties
under the legislation and this chapter;

(2)
In the case of default in payment of debt
charges on their securities, commence an action upon their securities to
require the subdivision to account as if it were the trustee of an express
trust for those holders or to enjoin any acts or things that may be unlawful or
in violation of the rights of those holders.

(D)
The state pledges to and agrees with the
holders of Chapter 133. securities that the state will not, by enacting any law
or adopting any rule, repeal, revoke, repudiate, limit, alter, stay, suspend,
or otherwise reduce, rescind, or impair the power or duty of a subdivision to
exercise, perform, carry out, and fulfill its responsibilities or covenants
under this chapter or legislation or agreements as to its Chapter 133.
securities, including a credit enhancement facility, passed or entered into
pursuant to this chapter, or repeal, revoke, repudiate, limit, alter, stay,
suspend, or otherwise reduce, rescind, or impair the rights and remedies of any
such holders fully to enforce such responsibilities, covenants, and agreements
or to enforce the pledge and agreement of the state contained in this division,
or otherwise exercise any sovereign power materially impairing or materially
inconsistent with the provisions of such legislation, covenants, and
agreements. The general assembly determines and declares that the provisions of
this chapter and the powers and duties of subdivisions authorized and imposed
under this chapter are proper, reasonable, and appropriate means by which the
state can and should exercise and has exercised its duties and powers under the
Ohio Constitution, and that those provisions are necessary and in the public
interest and a proper means to better provide for the security for, and market
reception for the purchase of, those securities. This pledge and agreement
shall be of no force and effect as to securities that are not outstanding. This
pledge and agreement by the state may be temporarily suspended upon the
declaration of martial law in the subdivision in the event of circumstances
deriving directly out of a natural disaster, such as an earthquake or major
conflagration or flood but not a snowstorm or civil disturbance, or out of
military invasions or civil insurrections, but not strikes or crises created by
financial or economic events. Payment for securities by the original and
subsequent holders shall be deemed conclusive evidence of valuable
consideration received by the state and subdivision for this pledge and
agreement, and any action by the state contrary to or inconsistent with this
division is void as applied to those securities. The state hereby grants any
such benefited holder the right to sue the state and enforce this pledge and
agreement, and waives all rights of defense based on sovereign immunity or
sovereign power in such an action or suit, it being expressly determined and
declared that the continued integrity of the contract of any such holder is
essential to the continued right of the subdivision to issue and pay debt
charges on securities as a subdivision of the state. Nothing in this division
requires the state to continue any particular level of appropriations of
moneys, or precludes the state from authorizing the subdivision to exercise, or
the subdivision from exercising, subject to approval of the tax commissioner,
any power provided by law to seek application of laws then in effect under the
bankruptcy provisions of the United States Constitution but in any case
providing for debt charges as provided in section
133.36 of the Revised Code, or to
preclude the state from further exercise of any of its powers and
responsibilities under the Ohio Constitution.

(E)
Moneys and investments held by the
subdivision or a paying agent or a fiscal agent, and all receipts of the
subdivision, needed and allocated to payment of debt charges or payments by the
subdivision under credit enhancement facilities, are property of the
subdivision devoted to essential governmental purposes and accordingly shall
not be applied to any purpose other than as provided in this chapter and in the
legislation, and shall not be subject to any order, judgment, lien, execution,
attachment, setoff, or counterclaim by any creditor or judgment creditor, as a
result of a tort judgment or otherwise, of the subdivision other than the
holders of the securities or the provider of the credit enhancement facility
who are entitled thereto pursuant to this chapter and the legislation.

(A)
Securities
issued by a subdivision shall state on their face the purposes, stated in
summary terms, for which, and identify the legislation under which, they are
issued. They shall bear interest at a rate or rates as provided for in that
legislation.

In the case of voted general obligation bonds to be payable
from sources other than property taxes or special assessments pursuant to
provision for payment from such other sources made by covenant or otherwise in
the legislation authorizing the bonds, the interest may be determined as a
variable rate or rates, which may change from time to time in accordance with a
base, formula, or standard, including determination at whatever rate is
required to sell the securities on the open market at par, or other floating
rate interest structure, identified or approved by the taxing authority.

(B)
The taxing authority
of a subdivision may issue Chapter 133. securities subject to call or
redemption prior to maturity at par, or at a premium or premiums as determined
by the taxing authority.

(A)
Chapter 133. securities shall be signed on behalf of the subdivision as
follows:

(1)
In the case of a municipal
corporation, by the mayor or other chief executive officer and by the fiscal
officer, or by any other officers who are designated to sign by the charter or
legislation of its taxing authority;

(2)
In the case of a county, by at least two
members of its taxing authority and by the county auditor, or, in the case of a
charter county, by those officers of the county who are designated to sign by
the charter or legislation of its taxing authority;

(3)
In the case of a school district, by the
president or vice-president of the board of education and by its fiscal
officer;

(4)
In the case of a
township, by at least two township trustees and by the township fiscal officer;

(5)
In the case of a subdivision
not referred to in divisions (B)(1) to (4) of this section, by the officer of
the subdivision or taxing authority designated to sign by other law or, if
there is no other law designating an officer, by the legislation authorizing
the securities.

(B)
If
an officer designated to sign securities or interest coupons pursuant to
division (A) or (E) of this section is for any reason unable or unavailable to
so sign, another officer of the subdivision or taxing authority, designated by
legislation passed by the taxing authority, may sign instead of that officer.

(C)
All signatures required by
this section may be facsimile signatures as provided for by sections
9.10 ,
9.11 , and
9.96 of the
Revised Code, unless the securities are issued in other than fully registered
form, in which case at least one signature shall be a manual signature.

(D)
If an officer who has signed,
manually or by facsimile signature, any securities of a subdivision ceases to
be such officer before the securities so signed have been actually delivered,
the securities may nevertheless be issued and delivered as though the person
who has so signed the securities had not ceased to be such officer. Any
securities may be signed as provided in this section, on behalf of the
subdivision, by an officer who is the proper officer of the subdivision or
taxing authority on the actual date of signing of the securities,
notwithstanding the fact that at the date of the securities or on the date of
delivery of the securities that person was or is not the proper officer of the
subdivision.

(E)
Securities, other
than fully registered securities, may, in the discretion of the taxing
authority, have interest coupons attached or otherwise appertaining. The
interest coupons shall be signed on behalf of the subdivision by the manual or
facsimile signature of its fiscal officer.

(A)
Before a taxing authority sells any securities of the subdivision to others,
the taxing authority may offer the securities at their purchase price and
accrued interest to the officer or officers who have charge of the bond
retirement fund of the subdivision, or in the case of a municipal corporation
to the treasury investment board for investment under section
731.56 of the Revised Code, or an
officer or similar treasury investment board having the authority under a
charter.

(B)
Any securities sold
under this section shall bear interest at a rate or rates that is a fair market
rate or rates for such securities at the time of the sale, and a certificate of
the fiscal officer that the interest rate or rates borne by the securities is
the fair market rate or rates is binding and conclusive as to the statements
set forth.

(A)
As
determined by the taxing authority, Chapter 133. securities may be sold by
competitive bid on the best bid, or at private sale in a manner determined or
authorized by the taxing authority, and at not less than ninety-seven per cent
of their principal amount, plus accrued interest, and at an interest rate or
rates not exceeding that determined by the taxing authority.

(B)
As provided in this division, the taxing
authority, or the fiscal officer if authorized by the taxing authority, may
combine securities that are payable from property taxes and that are authorized
for different permanent improvement purposes under separate legislation, each
dealing with one purpose, into a single consolidated issue of securities for
purposes of their sale as a single issue. A consolidated securities issue shall
contain a summary statement of purposes encompassing the purposes stated in the
separate legislation, and shall have maturities or principal payments
consistent with the aggregate of the separate periodic maturities or principal
payments if such maturities or payments are provided in the separate
legislation. If the periodic maturities or principal payments are not provided
in the separate legislation, a consolidated securities issue shall have
maturities or principal payments as provided in the legislation authorizing the
consolidated issue, consistent with the aggregate of the separate periodic
maturities or principal payments determined in accordance with this chapter.
Securities payable from property taxes to be levied outside the tax limitation
and securities payable from property taxes subject to the tax limitation, and
securities that are general obligations and securities that are not general
obligations, may not be combined for sale in a consolidated issue of
securities. The proceeds from the sale of a consolidated issue of securities
shall be apportioned, deposited, and credited in accordance with section
133.32 of the Revised Code to the
respective purposes and funds in accordance with the amount of securities
authorized by the separate legislation for each different one purpose. If there
are additional proceeds from the sale, they shall be apportioned, deposited,
and credited as provided in the legislation authorizing the consolidated issue.
To the extent a consolidated issue funds or refunds two or more issues of
anticipatory securities authorized by separate legislation, each dealing with
one purpose, all provisions for the consolidated issue may be included or
provided for in a single piece of legislation, notwithstanding other provisions
of this chapter or of other law.

(C)
As used in this division (C), "bid" means
bid or proposal. If to be sold by competitive bid on the best bid advertisement
for bids shall be in a newspaper of general circulation in the county where the
securities are issued, or in a financial journal, or by distribution of a
request for bids, or otherwise, in the manner and at the time or times
determined by the taxing authority or by an officer of the subdivision
authorized by the taxing authority to make that determination, and as provided
in this division (C). A copy of the advertisement shall be provided at least
ten days before the day for receipt of bids to the Ohio municipal advisory
council, provided that failure to do so shall not affect the validity of the
sale or of the securities.

(1)
Any
advertisement for competitive bids shall state all of the following pertaining
to the securities:

(b)
The amount
or amounts, and date or dates, of principal payments, or how and by whom they
shall be determined, including any mandatory sinking fund requirements, and any
provisions for call or redemption prior to maturity, including any mandatory
sinking fund redemption requirements;

(c)
The maximum rate or rates of interest if
any, any other limitations on interest or interest rates or the manner of
determining the interest rate or rates, and any maximum permitted discount;

(e)
The general purpose
or purposes and the source or sources of payment;

(f)
The day, hour, and place, which place
need not be in the subdivision, for receipt of bids, and the manner in which
bids may be presented;

(g)
The
basis on which the best bid will be determined, including, with respect to
interest cost, the basis for determining interest cost if other than net
interest cost determined by computing the interest payable to the stated
maturity date or dates, plus any discount or minus any premium bid;

(h)
The bid security, if any, as determined
by the taxing authority, to be submitted with or otherwise provided or
evidenced in connection with a bid;

(i)
Any other information, or terms of sale
determined or confirmed by the taxing authority or by its authorized officer,
pertinent to the sale.

(2)
A prospective bidder may present a bid
for the securities, based upon their bearing interest that does not exceed the
maximum rate or rates of interest, if any, specified in the advertisement or
request. Every bidder shall submit or otherwise provide or evidence in
connection with its bid any bid security in the form and amount specified in
the advertisement or request. Any bid security of the best bidder shall be
retained or not released pending delivery of the securities to the best bidder.
After the award of the securities to the best bidder, the subdivision shall
return or release any bid security of other bidders.

(3)
The taxing authority may itself by
legislation, or by the officer expressly authorized by and subject to any
maximum or maximum average interest rate or rates stated in legislation, accept
a bid, or the best bid determined in the manner prescribed by the taxing
authority or advertisement, that is presented by a responsible bidder. The
taxing authority or authorized officer may determine to reject any or all bids
received and to waive any informality, irregularity, or defect.

(D)
If not stated in the
legislation filed with the county auditor, the fiscal officer shall in writing
promptly advise the county auditor of each county in which any part of the
subdivision is located of the interest rate or rates on all general obligation
securities and other securities payable from property taxes maturing in more
than one year from date of issuance.

(A)
Unless otherwise provided in the proceedings, a subdivision that sells an issue
of securities shall deliver the securities for payment within the state to the
purchaser, or to a bank or trust company or other agent of the purchaser
designated by the purchaser, without charge to the purchaser. The subdivision
may agree to deliver the securities to any other place at the request of the
purchaser, at the expense of the purchaser unless otherwise provided in the
proceedings for sale. The expense of delivery to be paid by the subdivision
shall not be considered in determining the best bid for securities sold at
public sale.

(B)
The subdivision
or its paying agent or registrar shall not deduct any amount from the debt
charges payable on any securities as any registration, transfer, exchange,
collection, payment, or other service charge.

Unless otherwise provided by law or in proceedings authorized
by law, proceeds from the sale of Chapter 133. securities shall be deposited
and credited as follows:

(A)
An
amount equal to the principal amount of or the discount purchase price of the
securities, and if determined by the taxing authority or the fiscal officer any
amount for capitalized interest, shall be credited to the fund or funds for the
purposes of which the securities are issued and shall be deemed appropriated
for and used for the purpose set forth in the legislation.

(B)
Any amount received as payment of premium
and accrued interest, and if determined by the taxing authority or the fiscal
officer any amount for capitalized interest, and in the case of securities
maturing over five or more years any amount provided for in the proceedings as
a reserve for debt charges, not exceeding the highest debt charges on the
securities in any fiscal year, shall be paid into the bond retirement fund and
credited to accounts as provided in the legislation.

(C)
If anticipatory securities have been
issued, the moneys remaining from the proceeds of sale of the anticipatory
securities, unless and to the extent those moneys remain to be applied pursuant
to division (A) of this section, and the moneys received from the sale of the
securities anticipated, shall to the extent needed to pay debt charges on the
anticipatory securities be deposited in the bond retirement fund and used for
that purpose.

(A)
The officer having charge of the minutes
of the taxing authority or other public issuer shall prepare and certify, and
if requested by the original purchaser of the securities or of the
fractionalized interests in its public obligations furnish to that original
purchaser, a true transcript of proceedings pertaining to the securities or to
the public obligations. The transcript shall include all of the following:

(1)
A statement of the character of the
meetings of the taxing authority or other public issuer at which the
proceedings were had;

(3)
A
statement that all such proceedings were held in compliance with the law, which
statement creates a conclusive presumption that the proceedings were held and
taken in compliance with all laws and all legislation and rules and any charter
of the taxing authority or other public issuer, including, as applicable,
section 121.22 of the Revised Code and
related legislation and rules of the taxing authority or other public issuer,
unless an action or proceeding challenging the validity of the securities or
the public obligations is commenced prior to delivery of the securities or the
fractionalized interests in public obligations as provided in division (B) of
section 133.02 of the Revised Code;

(4)
Such other information from
the records of the public issuer as is necessary to evidence or determine the
regularity and validity of the authorization of the securities or public
obligations, and of the issuance and sale of the securities.

(B)
The fiscal officer of the
subdivision shall certify and include in the transcript relating to general
obligation securities a true and correct statement of the indebtedness
represented by outstanding general obligation securities of the subdivision and
of the tax valuation of the subdivision, and such other information as will
permit a determination that the issue of securities is within any net
indebtedness or other direct or indirect debt limitation imposed by the Ohio
Constitution or law.

(C)
No
officer, or any of his deputies or subordinates, shall knowingly make or
certify a false transcript or statement in respect to any of the matters set
forth in this section.

(A)
Upon the determination of the taxing authority that such
funding or
refunding will be in the subdivision's best interest, the subdivision
may:

(1)
Issue
general obligation securities to fund or refund any outstanding revenue or
mortgage revenue, sales tax supported, or other special obligation securities
previously issued by it for permanent improvements pursuant to authorization by
law or the Ohio Constitution. Any general obligation bonds issued pursuant to
this division (A)(1) shall be payable as to principal at such times and in such
installments as determined by the taxing authority consistent with section
133.21 of the Revised Code, but
their last maturity shall not be later than thirty years from the date of
issuance of the original securities issued for the original purpose.

(2)
Issue revenue or mortgage revenue securities, if authorized by other law or the
Ohio Constitution to issue such securities for the original purpose, to fund or
refund any outstanding general obligation or sales tax
supported securities previously issued by it pursuant to authorization by law.
The taxing authority shall establish the maturity date or dates, the interest
payable, and other terms of such securities as it considers necessary or
appropriate for their issuance.

(3)
Issue general obligation securities to fund or refund outstanding general
obligation bonds issued in one or more issues for any purpose or purposes.
General obligation securities issued pursuant to this division (A)(3) shall be
payable as to principal at such times and in such installments as determined by
the taxing authority. Section
133.21 of the Revised Code is not
applicable to these refunding securities, but the last maturity of these
refunding securities shall not be later than the year of last maturity
permitted by law for the general obligation bonds refunded. Tax levies for debt
charges on the refunding general obligation securities shall be considered to
have the same status with respect to the provisions of the applicable tax
limitation as the levies for debt charges on, and the refunding general
obligation securities shall be considered to have the same status with respect
to net indebtedness limitations as, the general obligation bonds that are
refunded.

(4)
Issue
sales tax supported securities to fund or refund any outstanding revenue or
mortgage revenue or general obligation or other special obligation securities
previously issued by it for permanent improvements pursuant to authorization by
law or the Ohio Constitution. Any sales tax supported bonds issued pursuant to
this division (A)(4) shall be payable as to principal at such times and in such
installments as determined by the taxing authority consistent with division (E)
of section 133.081 of the Revised Code, but
their last maturity shall be consistent with division (B) of section
133.081 of the Revised Code.

(5)
Apply moneys
from other sources to fund any outstanding securities or public obligations
issued by the taxing authority pursuant to authorization by law or the Ohio
Constitution, including the funding of any mandatory sinking fund redemption
requirements.

(B)
Securities issued pursuant to this section shall be considered to be issued for
the same purpose or purposes as the securities that they are issued to fund or
refund, and their proceeds shall be used as determined by the taxing authority
consistent with their purpose. That use may include the payment of the
outstanding principal amount of, any redemption premium on, and any interest to
redemption or maturity on, the securities being funded or refunded, and any
expenses relating to the funding or refunding or the issuance of the refunding
bonds, including financing costs, all as determined by the taxing authority.
Proceeds of securities issued pursuant to this section may also be used to
provide additional money for the purpose or purposes for which the securities
being funded or refunded, or which they funded or refunded, were issued, but
section 133.21 of the Revised Code is
applicable to any such portion of general obligation securities.

(C)
Securities may be issued and other moneys may be
applied pursuant to this section to fund or refund all or any portion of
the outstanding securities, and whether or not the securities to be funded or
refunded were issued subject to call or redemption prior to maturity or are the
original securities or are themselves refunding securities.

(D)
Moneys derived from the proceeds of securities issued pursuant to this section
to fund or refund general obligation bonds, or moneys from other sources, and
required for the purpose shall, under an escrow agreement or otherwise, to the
extent required by the legislation be placed in an escrow fund, which may be in
the bond retirement fund in the case of the funded or refunded bonds being
payable within ninety days of issuance of the refunding securities,
and other moneys applied pursuant to this section to
fund general obligation bonds shall, under an escrow agreement or otherwise, to
the extent required by the legislation, be placed in an escrow fund that may be
in the sinking fund or bond retirement fund, and in either case are pledged for the purpose of funding
or refunding the refunded general obligation bonds and shall be used, together
with any other available funds as provided in this section, for that purpose.
Pending that use, the moneys in escrow shall be invested in direct obligations
of or obligations guaranteed as to payment by the United States that mature or
are subject to redemption by and at the option of the holder not later than the
date or dates when the moneys, together with interest or other investment
income accrued on those moneys, will be required for that use. Any moneys in
the escrow fund derived from the issuance of revenue or mortgage revenue or
sales tax supported securities that will not be needed to pay debt charges on
the funded or refunded general obligation bonds may be used for and pledged to
the payment of debt charges on the refunding securities and on any securities
issued on a parity with the refunding securities. Any moneys in the escrow fund
derived from the proceeds of refunding general obligation securities and that
will not be needed to pay debt charges on the refunded general obligation bonds
shall be transferred to the bond retirement fund. When the subdivision has
placed in escrow moneys, derived from proceeds of refunding obligations or
otherwise, or those direct or guaranteed obligations of the United States, or a
combination of both, determined by an independent public accounting firm to be
sufficient, with the interest or other investment income accruing on those
direct or guaranteed obligations, for the payment of debt charges on the
funded or refunded general obligation bonds, the
funded or refunded general obligation bonds shall
no longer be considered to be outstanding, shall not be considered for purposes
of determining any limitation, direct or indirect, on the indebtedness or net
indebtedness of the subdivision, and the levy of taxes or other charges for the
payment of debt charges on the funded or refunded
general obligation bonds under this chapter, Chapter 5705., or other provisions
of the Revised Code, shall not be required. For purposes of this division,
"direct obligations of or obligations guaranteed as to payment by the United
States" includes rights to receive payment or portions of payments of the
principal of or interest or other investment income on:

(2)
Other obligations fully secured as to payment by those obligations and the
interest or other investment income on those obligations.

(E)
The authority granted by this section is in addition to and not a limitation on
any other authorizations granted by or pursuant to law or the Ohio Constitution
for the same or similar purposes, and does not limit or restrict the authority
of municipal corporations to issue, under authority of Article XVIII, Ohio
Constitution, revenue or mortgage revenue securities to fund or refund either
general obligation securities or other revenue or mortgage revenue securities.

If a refunding or plan of refunding of the indebtedness of any
subdivision includes securities which are deposited with the treasurer of state
or superintendent of insurance under any law, and such officer determines that
it is in the public interest to refund such securities and exchange them for
refunding securities to be issued pursuant to any such refunding or plan of
refunding under this chapter or complementary sections of the Revised Code,
such officer may, with the consent of such depositor, or of its conservator if
one has been appointed, or of the superintendent of banks if he has taken
possession of the business and property of such depositor, and any supervising
authority of the state, consent to such refunding or plan of refunding, and
exchange such securities for such refunding securities which need not bear the
same rate of interest as the securities to be exchanged, and may waive overdue
interest, including interest upon any overdue interest upon such securities,
whether represented by coupons or otherwise, if the plan of refunding so
provides. Such officer shall hold such refunding securities under the same
terms as the original securities.

For the purpose of enabling subdivisions to take advantage of
the act of congress entitled "An act to establish a uniform system of
bankruptcy throughout the United States," approved July 1, 1898, including acts
amendatory thereof and supplementary thereto, and for that purpose only, and
notwithstanding any statutes of this state to the contrary, particularly this
chapter, the taxing authority of any subdivision provided for in the act and
acts amendatory thereof and supplementary thereto, upon approval of the tax
commissioner, may file a petition stating that the subdivision is insolvent or
unable to meet its debts as they mature, and that it desires to effect a plan
for the composition or readjustment of its debts, and to take such further
proceedings as are set forth in the act of congress and acts amendatory thereof
and supplementary thereto as they relate to any such subdivision. The taxing
authority of any subdivision provided for in the act, at any time such acts are
in force and applicable, may upon like approval refund its outstanding
securities, whether matured or unmatured, and exchange refunding bonds for the
securities being refunded. In its order approving such refunding, or in any
amendment thereof, the tax commissioner shall fix the maturities of the bonds
to be issued, which need not be subject to sections
133.20 and
133.21 of the Revised Code, or any
other sections of the Revised Code limiting the maturities thereof. Such
refunding bonds may bear different rates of interest for different periods of
time during their life. No such bonds shall mature in more than thirty years.
The debt charges thereon shall have the same status with respect to the
limitations imposed by Section 2 of Article XII, Ohio Constitution, as the debt
charges on the securities which are refunded. No taxing subdivision shall be
permitted, in availing itself of such acts of congress, to scale down, cut
down, or reduce the principal sum of its securities, except that interest
thereon may be reduced in whole or in part.

With the approval of the tax commissioner, the taxing authority
of any subdivision at any time may refund any outstanding bonds of the
subdivision which have matured or which are about to mature and which were
issued in anticipation of the collection of special assessments, together with
the amount of the interest coupons due or to become due on such bonds. The
commissioner shall approve such issue only to any extent it is found that no
other method of payment in whole or in part exists or will exist prior to the
maturity date of such bonds which are about to mature from the collection of
special assessments in anticipation of which such bonds were issued or from
other funds in the bond retirement fund of the subdivision, excluding
securities held in the bond retirement fund only when the commissioner finds
that the sale of such securities in order to meet the debt charges thereon
would necessitate an unwarranted sacrifice of the securities so held, thereby
impairing the ability to meet other debt charges in the future. In the order
approving such issue, the commissioner shall fix the maturities of the bonds to
be issued, which need not be subject to sections
133.20 and
133.21 of the Revised Code. No such
bonds shall mature in more than ten years. The debt charges thereon shall have
the same status with respect to the limitations imposed by Section 2 of Article
XII, Ohio Constitution, as the debt charges which are refunded.

The proceeds derived from the sale of such refunding bonds
shall be transferred to the bond retirement fund of the subdivision, and shall
be used only for the purpose of meeting the debt charges on the bonds to be
refunded.

(A)
If Chapter 133. securities authorized to
fund or refund anticipatory securities remain unsold after being offered at
public or private sale under section
133.30 of the Revised Code, the
taxing authority may, with the consent of the holder of any of the anticipatory
securities, by legislation renew or extend the maturity of any of such
anticipatory securities with interest at the same or a new rate or rates, for
not to exceed one year, to be evidenced by notation on the anticipatory
securities or by the issuance of replacement securities. The taxing authority
may also exchange the securities anticipated for such anticipatory securities
upon terms prescribed by legislation. Legislation passed under this division
shall be certified by the fiscal officer to the county auditor of each county
in which any part of the subdivision is located.

(B)
If Chapter 133. securities that have been
authorized for the purpose of funding or refunding outstanding anticipatory
securities remain unsold after being offered at public or private sale, the
taxing authority may by legislation approve the exchange of the securities for
any of the securities to be funded or refunded. The holder of the outstanding
securities may exchange the securities held for a lesser or like amount of the
new securities at not less than the principal amount of the new securities plus
accrued interest. Any excess or deficiency in principal amount of the
outstanding securities, new securities, or such anticipatory securities shall
be paid to the other by the security holder or the subdivision, as the case may
be. The fiscal officer shall determine the amount of cash and the amount of new
securities to be given to such security holders, which determination shall be
based upon the amount of cash in the bond retirement fund or other special fund
available for such payment. The fiscal officer shall certify that determination
to the taxing authority and the taxing authority shall approve the
determination by legislation before any such securities are exchanged.

(C)
A subdivision that has issued
anticipatory securities may issue securities in a principal amount greater than
the cost of the permanent improvement or of the amount of unpaid special
assessments levied to pay the cost of the permanent improvement and with such
maximum maturities as would have been required had no special assessments
matured, if the tax commissioner certifies that no other funds are available
and applicable to the payment of debt charges on the anticipatory securities at
maturity. The principal amount of the new securities shall not exceed the
principal amount of the maturing anticipatory securities.

(A)
The taxing
authority of a subdivision may authorize, by specific legislation or by general
legislation authorizing the fiscal officer or registrar to act for it, the
issuance of a duplicate security to the holder or owner of any lost, stolen,
mutilated, or destroyed security, including any appertaining coupons, as
provided in section
1308.41 of the Revised Code, or
any check or warrant issued in payment of debt charges, which duplicate shall
be in the same general form and contain the same terms, and be signed, as
required for the original instrument. The instrument so issued shall plainly
show upon its face that it is a duplicate.

(B)
In lieu of the issuance of a duplicate of
a security that has matured, the taxing authority may authorize the fiscal
officer to pay the debt charges that are due on the security, with appropriate
recording of and receipt for payment.

(C)
The taxing authority may require, before
the issuance of such a duplicate or the making of such payment, all of the
following:

(2)
Payment by the holder or owner of the reasonable expense of issuing the
duplicate or making the payment, including administrative and legal expenses
and any printing costs;

(3)
A bond
of indemnity or other type of surety, satisfactory to the fiscal officer,
securing the subdivision, its officers, the paying agent, and the registrar
against all loss or liability for or on account of the instrument replaced or
payment made.

(A)
A subdivision may, if authorized by the
taxing authority and upon the request of and at the expense of the original
purchaser, in the case of initial delivery of securities, or holder of coupon
securities, issue fully registered securities in lieu of or in exchange for
coupon securities in a principal amount not exceeding the unpaid principal
amount of the coupon securities. Such fully registered securities shall have
the same terms, except manner of payment, as the coupon securities, and shall
be of such denominations as the original purchaser or the holder of the coupon
securities requests and as the fiscal officer approves.

(B)
A subdivision may, if authorized by the
taxing authority and upon the request of and at the expense of an owner or
holder of any fully registered securities originally issued prior to January 1,
1983, issue coupon securities in exchange for the registered securities in a
principal amount not exceeding the unpaid principal amount of the registered
securities offered in exchange. The coupon securities shall have the same
terms, except manner of payment, as the registered securities, and shall be of
the same denominations as the original coupon securities in lieu of or in
exchange for which the registered securities were issued.

(C)
No securities shall be issued under
division (A) or (B) of this section until the securities offered in exchange,
including coupons if coupon securities, have been delivered to the subdivision
or its agent for the purpose. The prior securities may be held in safekeeping
for reissuance purposes, or canceled and destroyed.

(D)
The subdivision or its agent for the
purpose may charge the owner or holder with the reasonable expense of making
the exchange authorized by this section, including administrative and legal
expenses and any printing costs.

(A)
A
subdivision shall keep or cause to be kept a register for the purpose of
effecting the exchange, transfer, and payment of fully registered securities,
which shall show the date, series, denomination, and owner of such fully
registered securities and, if the case, the number and series of the coupon
securities for which they were exchanged.

(B)
A subdivision shall pay or cause to be
paid the debt charges on fully registered securities only to or on the order of
the person appearing by the register to be the owner of the securities, unless
otherwise provided in an applicable credit enhancement facility.

(C)
Subject to any applicable provisions of
the proceedings, registered securities may be transferred or exchanged on the
register by the registered owner in person or by a person authorized by the
registered owner to do so by a power of attorney.

(A)
A subdivision may register any coupon
security registrable as to principal upon the request of the owner or holder.
The officer in charge of the bond retirement fund or, if there is no such
officer, the fiscal officer of the subdivision shall note the registration on
the security. Thereafter, no transfer shall be valid unless the transfer is
entered on the records of the subdivision and similarly noted on the security,
and the security may be discharged from registration by being in like manner
transferred to bearer and thereupon the security may be transferred by
delivery.

(B)
Registration of a
coupon security as to principal does not affect the negotiability of the
appertaining coupons. A negotiable coupon is transferable by delivery whether
or not the principal of the security to which it appertains is registered.

(C)
The responsible officers of
the subdivision may charge a reasonable fee as compensation for the expense of
such registration.

When any officers, boards, or commissions have consented to any
exchange or plan of exchange as provided in section
133.49 of the Revised Code, any
officer having possession of any notes or bonds to be exchanged for refunding
bonds shall deliver them pursuant to such exchange or plan and he shall receive
the bonds to be issued in exchange therefor, together with any cash to be paid
pursuant to such plan.

Any county, municipal corporation, or township may issue or
incur public obligations, including general obligations, to provide, or assist
in providing, housing pursuant to Section 16 of Article VIII, Ohio
Constitution.

A county, municipal
corporation, or township may issue or incur public obligations, including
general obligations, to provide, or assist in providing, grants, loans, loan
guarantees, or contributions for conservation and revitalization purposes
pursuant to Sections 2o and 2q
of Article VIII, Ohio Constitution.

Whenever bonds issued in anticipation of the collection of
special assessments are refunded, as authorized by section
133.37 of the Revised Code, the
taxing authority may reassess against each lot or parcel of land upon which the
original assessments were levied and are due and unpaid, the due and unpaid
part of the installments of such assessments with interest. Whenever,
irrespective of the issuance of any refunding bonds, any annual assessment
installment certified to the county auditor for collection has become due and
remains unpaid, and the political subdivision has paid all of the annual or
semiannual serial bond maturities which are due and which were issued in
anticipation of the collection of said special assessment, the taxing authority
may reassess against each lot or parcel, upon which the original assessments
were levied and are due and unpaid, the due and unpaid part of the installments
of such assessments. The amount so reassessed against each lot or parcel shall
be equal to the amount due and unpaid on the principal sum of the original
assessment or installment of assessments so reassessed, and shall include in
addition any interest included in or accrued upon such installments, but shall
not include any penalties or any interest chargeable under section
323.121 of the Revised Code, which
shall thereupon be remitted. When reassessed to pay refunding bonds, such total
amount shall be payable in substantially equal annual or semiannual
installments which may commence at the taxpaying period immediately following
the taxpaying period at which the last installment of the original assessment
will be due and payable over the period of years for which said refunding bonds
are issued, and shall bear interest at the same rate as is borne by such
refunding bonds. When otherwise reassessed, such total amount shall be payable
in substantially equal annual or semiannual installments which may commence at
the taxpaying period immediately following the taxpaying period at which the
last installment of the original assessment will be due, and ending not more
than fifteen years from the date of the reassessment, and shall bear interest
at such a rate as the taxing authority fixes in its assessing measure. Such
reassessments shall not be subject to the limitations of section
727.03 of the Revised Code or to
any other statutory limit on the amount of assessments.

Before adopting any
reassessment provided for in section
133.54 of the Revised Code, the
fiscal officer shall prepare and file for public inspection a list containing
the names of the owners, a tax duplicate description of each parcel of land on
which the reassessment will be levied, and the total amount to be reassessed,
separately stated as to each parcel, and the taxing authority shall publish
notice for two consecutive weeks in a newspaper of general circulation in the
political subdivision, or as provided in section
7.16 of the
Revised Code, that such reassessment has been prepared by the fiscal
officer and that it is on file in the fiscal officer's office for the inspection
and examination of the persons interested therein. Sections
727.13 ,
727.15 , and
727.16 of the Revised Code do not
apply to any such assessments, but any person may file objections in writing
with the fiscal officer within one week after the expiration of such notice and
the taxing authority shall hear and determine any such objections at its next
meeting. Such objections shall be limited solely to matters of description of
parcels and owners and of computations of amounts, and no matters concluded by
any proceedings on the original assessments shall form the basis for any such
objections. When the reassessment list is confirmed by the taxing authority, it
shall be complete and final and shall be recorded in the office of the fiscal
officer.

After the taxing authority has approved the assessments
provided for in section
133.54 of the Revised Code, like
proceedings shall be had for the levy, certification, payment, and collection
of said assessments as apply to the levy, certification, payment, and
collection of original assessments, and all laws relating to the levy,
certification, payment, and collection of original assessments, except as
otherwise set forth in sections
133.54 to
133.57 of the Revised Code, shall
govern the levy, certification, payment, and collection of such reassessments.
Such certification shall distinctly state the fact that it is a reassessment,
and shall specify the original assessments for which it is substituted. Upon
certification of the first installment of such reassessment for collection to
the county auditor, and to the county recorder when registered title is
involved, the auditor, and also the recorder in case of registered lands, shall
cancel the installments of original assessments so reassessed against the lots
or parcels on which the reassessment has been made and the interest and penalty
thereon, as the same stand on the tax list and duplicate and on the original
certificate of title. Any special assessments reassessed as provided in this
section shall not again be reassessed.

Whenever a political subdivision has started proceedings under
section 133.54 of the Revised Code to
reassess any original assessment installments against any lot or parcel of
land, and there is pending, or prior to the cancellation of the original
assessment installments there is commenced, a suit in any manner involving the
lien of such original assessment or assessment installments, the lien of any
such reassessment shall attach to such parcel of land in the hands of the
purchaser at judicial sale in the same manner as though such reassessment were
an original assessment levy by the subdivision, but only for the total amount
due and unpaid with interest accrued on such original assessment installments
after a distribution of funds applicable to such original assessment lien in
said suit. Upon determination of the total amount paid in such distribution to
the subdivision, the fiscal officer thereof shall revise and recertify such
reassessment against said parcel for the proper amount. Any party in any such
suit may at any time before the entry of the order of sale inform the court of
the pendency or conclusion of such reassessment proceedings and upon hearing
the court shall, if such proceedings are concluded, take account of and give
effect to such change of assessment lien in its order of sale. If such
proceedings are not concluded, the court may make such order as it deems proper
to protect the rights of the parties and the subdivisions interested in said
assessment.

(B)
The board of county
commissioners of a county may issue bonds for the purpose of acquiring
agricultural easements. The issuance of the bonds is subject to this chapter,
except that their maturity shall not extend beyond the expiration of the tax
imposed under section
5739.026 of the Revised Code. The
bonds do not constitute general obligations of the county, and they shall not
pledge the full faith and credit or revenue of the county, except revenues from
the taxes levied under sections
5739.026 and
5741.023 of the Revised Code. The
resolution authorizing the bonds shall appropriate the proceeds of those taxes
first to the payment of debt charges on the bonds, and other appropriations
from the proceeds of those taxes shall be limited to any balance that remains
after paying in full the debt charges on the bonds.

All moneys raised by the issuance of bonds under this section,
after payment of the costs of issuance and financing costs, shall be used
exclusively for the acquisition of agricultural easements.

The legislative authority of a municipal corporation, board of
county commissioners of a county, or board of township trustees of a township
may issue general obligation bonds for the purpose of acquiring agricultural
easements. The bonds shall be issued in the manner provided in section
133.18 of the Revised Code and
pursuant to this chapter.

All moneys raised by the issuance of bonds under this section,
after payment of the costs of issuance and financing costs, shall be used
exclusively for the acquisition of agricultural easements.

(A)
As used in this
section, supplementing the definitions of the terms contained in section
133.01 of the Revised Code:

(1)
"Issuer" also includes any person issuing
fractionalized interests in public obligations, an obligor, and, in the case of
public obligations, the public issuer.

(2)
"Securities" also includes public
obligations as defined in division (GG)(2) of section
133.01 of the Revised Code and
fractionalized interests in public obligations, both referred to in this
section as "division (A)(2) securities."

(1)
An
issuer, at any time prior to its issuance or entering into of securities, may
file a complaint for validation and thereby commence an action for the purpose
of obtaining an adjudication of its authority to issue or enter into and the
validity of, and security for and source of payment of, the securities, and of
the validity of all proceedings taken and proposed to be taken in connection
therewith, including, but not limited to, any of the following:

(e)
The proceedings and remedies
for the collection of the taxes, special assessments, rates, charges, rentals,
lease payments, or tolls, or payments by an obligor.

(2)
No such action shall be commenced except
upon determination of its necessity by the taxing authority or other authority
empowered to adopt the legislation or order for the issuance of the securities
or, in the case of division (A)(2) securities, the obligor.

(3)
Except as provided in division (B)(4) of
this section, the action shall be commenced in the court of common pleas of the
county in which the issuer, or in the case of division (A)(2) securities, the
obligor, is located in whole or in part or has its or a principal office. The
tax commissioner and the county auditor of the county in which the action is
commenced shall be named as party defendants. Service of summons shall, unless
waived, be made upon such parties in the manner provided for service of summons
by the Rules of Civil Procedure. The property owners, taxpayers, and citizens
of the issuer, or in the case of division (A)(2) securities, the obligor,
nonresident owners of property subject to taxation or special assessment for
payment of debt charges on the securities by the issuer or obligor, and all
other persons affected by or interested in the issuance of the securities,
shall be deemed joined as defendants without service to the same extent as if
individually named in the complaint.

(4)
If the issuer of the securities, or, in
the case of division (A)(2) securities, the obligor, is the state or any state
agency, such action shall be commenced in the court of common pleas of Franklin
county. The tax commissioner shall be named as party defendant, and the
taxpayers, property owners, and citizens of the state, nonresident owners of
property subject to taxation or special assessment for payment of debt charges
on the securities by the issuer or obligor, and all other persons affected by
or interested in the issuance of the securities, shall be deemed joined as
defendants without service to the same extent as if individually named in the
complaint.

(C)
The
complaint for validation shall contain that which is required by the Civil
Rules including, without limitation, in ordinary and precise language and by
references or exhibits, statements or descriptions of all of the following:

(2)
The
holding and result of any required election relating to the securities;

(3)
If already passed or issued,
the legislation, order, or proceeding authorizing the issuance of the
securities and evidence of its passage or issuance;

(4)
All other essential proceedings taken and
proposed to be taken in connection with the securities;

(5)
If not set forth in legislation, order,
or proceeding already passed or issued, the approximate amount and general
proposed terms of the securities;

(6)
The county or counties in which the
proceeds of the securities, or any part thereof, are to be expended;

(7)
If the securities are division (A)(2)
securities, the same information referred to in divisions (C)(1) to (4) of this
section as to the obligor and its obligations, including any public
obligations, relating to the division (A)(2) securities;

(D)
Except as otherwise provided
in this section, all proceedings pursuant to this section shall be governed by,
as applicable, the Rules of Civil Procedure and the Rules of Appellate
Procedure.

(E)
Upon the filing of
the complaint, the court shall issue an order in general terms in the form of a
notice directed to the state and to "all property owners, taxpayers, citizens,
and others having or claiming any right, title, or interest in any property or
funds to be affected" by the issuance or entering into of the securities or
"affected in any way thereby," requiring the state through the attorney general
and all such persons to appear and be heard before the court at a time to be
designated in the order, and show cause why the prayer of the complaint should
not be granted and the proceedings and the securities validated and confirmed
as therein prayed.

(F)
At least
twenty days before the time fixed in the order for hearing, a copy of the
complaint and order, unless waived in writing by the receiving attorney, shall
be served upon the prosecuting attorney of the county in which the action is
commenced, the prosecuting attorney of each county in which it is proposed to
expend ten per cent or more of the proceeds of the sale of the securities, and
the attorney general. No more than one copy of the complaint and order need be
served upon any one prosecuting attorney. Each such attorney shall carefully
examine the complaint and if it appears, or there is reason to believe, that
the complaint is defective, insufficient, or untrue, or if in the opinion of
the attorney the issuance of the securities or, if the case, the entering into
of the public obligation, is not lawful or they have not been duly authorized,
the attorney may enter an appearance for the county, or the state in the case
of the attorney general, and assert any defense to the complaint that the
attorney considers proper. The attorney may enter an appearance and assert any
support for the complaint that the attorney considers proper.

(G)
The clerk of the court in which the
action is commenced shall cause a copy of the order to be published once a week
for two consecutive calendar weeks, in a newspaper of general circulation in
that county and in each other county the prosecuting attorney of which is
required to be served under division (F) of this section. The first publication
in each county shall be made not less than fourteen nor more than twenty-one
days prior to the date set for hearing. Upon the last publication of the order,
service upon all property owners, taxpayers, citizens, or others having or
claiming any right, title, or interest in or against the plaintiff or property
subject to taxation or special assessment for payment of debt charges on the
securities or otherwise affected by or interested in the issuance or entering
into of the securities described in the complaint is complete, and the court
has jurisdiction of them to the same extent as if such defendants were
individually named in the complaint and personally served.

(H)
The attorneys referred to in division (F)
of this section, and any other person made a defendant or his counsel, shall,
subject to laws restricting public access to certain records, have reasonable
access to all records and proceedings of the issuer and, if division (A)(2)
securities are involved, the obligor, which pertain to the matters described in
the complaint. Any officer, agent, or employee of the issuer, and in the case
of division (A)(2) securities the obligor, who has charge, possession, custody,
or control of any of those records and proceedings shall, on request of that
person, make available for examination those records and proceedings and shall
furnish such authenticated copies of them as the person requests and at that
person's expense.

(I)
Upon motion
of the issuer, whether before or after the date set for hearing as provided in
division (E) of this section, the court may enjoin any person from commencing
any other action or proceeding contesting the same or related matters as
described in the complaint, as the complaint may from time to time be amended.
The court may order a joint hearing or trial before it of all such related
issues then pending in any action or proceeding in any court in the state, and
may order any such action or proceeding consolidated with the validation
complaint pending before it, and may make such order as may be necessary or
proper to effect that consolidation and as may tend to avoid unnecessary costs
or delays or multiplicity of suits. That order is not appealable.

(J)
Any property owner, taxpayer, citizen, or
person affected by or interested in the issuance or entering into of the
securities may become a named party to the action by pleading to the complaint
at or before the time set for the hearing provided in division (E) of this
section, or thereafter by intervention upon leave of court.

(K)
At the time designated in the order for
hearing, the court shall proceed to hear and determine all questions of law and
fact in the action and may make such interlocutory orders and adjournments as
will enable it properly to try and determine the action and to render a final
judgment with the least possible delay.

(L)
Any party to the action may appeal from a
final judgment of a court of common pleas under division (K) of this section to
the court of appeals. The notice of appeal must be filed within ten days of the
entry of final judgment by the court of common pleas. The appeal shall take
priority over all other civil cases therein pending, except habeas corpus. No
oral argument shall be permitted on appeal except at the request of the court
on its own motion.

(M)
All of the
following apply to a final judgment of the court of common pleas, as finally
affirmed or modified in any appeal, that determines that the issuer has
authority to issue the securities upon the general terms set forth in the
complaint for validation and that adjudicates the legality of all proceedings
taken and proposed to be taken in connection with the securities and any
underlying public obligation:

(1)
The final
judgment is forever binding and conclusive, as to all matters adjudicated,
against the issuer, any obligor, and all other parties to the action, and those
in privity with them, whether named in the action or included in the
description in the notice provided for in division (E) of this section.

(2)
If all procedural steps
required to be taken for the completion of the authorization, issuance, sale,
and delivery of the securities, and for entering into any underlying public
obligation, after the date of the final judgment, are properly taken in
accordance with the applicable provisions of law and the terms of the final
judgment, the final judgment constitutes a permanent injunction against any
person's contesting, by any action or proceeding, any of the following:

(a)
The validity of the securities and of any
underlying public obligation generally described in the complaint;

(b)
The validity of the taxes, special
assessments, tolls, charges, rates, or other levies, or lease payments, or
payments by an obligor, authorized, contracted, or covenanted to be imposed,
made, or collected for the payment of the debt charges on the securities or of
payment obligations under the public obligation;

(c)
The validity of any pledge of or lien on
revenue or property to secure the payment of the debt charges or payment
obligations on the securities.

(3)
A final judgment does not permanently
enjoin any person not a named party to the action from raising a claim or
defense seeking relief in whole or in part from any levy of taxes or special
assessments, made or to be made or collected or to be collected against
property owned by that person, authorized for the payment of any debt charges
or payment obligations on the securities described in the complaint if the
claim or defense is based upon a right that such person may have only in his
individual capacity as an owner of the property subject to the tax or special
assessment, including but not limited to any rights under sections
727.02 ,
727.15 ,
727.16 , and
727.17 of the Revised Code.

(N)
The costs of each
action under this section shall be paid by the plaintiff and may be paid from
the proceeds of the securities, except that if a taxpayer, citizen, or other
person has contested, intervened in, or appealed the action the court may tax
the whole or such part of the costs against that person as is equitable and
just.